Firm Ex Ante Heterogeneity, Entry and the Labour Share
Bibliographic Data
| ID | 9704810 |
|---|---|
| Authors | Jakob Grazzini (0000-0001-7198-2361, University of Pavia), Lorenza Rossi (Lancaster University Management School, UK, & University of Pavia , Italy, corresponding author) |
| Year | 2022 |
| Volume | 133 |
| Issue | 649 |
| Pages | 235-257 |
| Publication date | 2022-12-10 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ej/ueac054 |
| OpenAlex | W4295353194 |
| Language | EN |
| References cited | 42 |
This paper considers a two-sector real business cycle model augmented with firm heterogeneity and firm dynamics, and studies the steady state and dynamic properties of the model in response to a decline in the relative price of investment. It shows that both firm heterogeneity and entry play a crucial role in the decline in the labour share and the increase in capital intensity observed in the US economy. Using ORBIS firm-level data of the US economy, the paper finds robust evidence consistent with the mechanisms described in the model
Business cycle · Economics · Ex-ante · Investment (military · Labour economics · Macroeconomics · Microeconomics · Monetary economics · Economic Growth and Productivity · Economic Theory and Policy · Firm Innovation and Growth
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| Highly cited | No |
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