Data and Code for: Market Power and Innovation in the Intangible Economy

Principal Investigator(s):  View help for Principal Investigator(s) Maarten De Ridder, London School of Economics

Version:  View help for Version V1

Name File Type Size Last Modified
  code_and_output 07/19/2023 11:50:AM
  code_and_output_confidentialdata 07/19/2023 11:50:AM
  data 07/19/2023 11:50:AM
  model 07/20/2023 07:30:AM
Licence.txt text/plain 17.9 KB 09/30/2023 03:29:AM
_master.do text/plain 3.9 KB 07/23/2023 05:51:AM

Project Description

Summary:  View help for Summary This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. The increasing use of intangible inputs – such as software – explains these trends because it causes a shift from variable costs towards fixed costs, which changes the way that firms produce and compete. I develop a quantitative framework with heterogeneous firms and endogenous productivity growth in which intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage. This advantage deters other firms from entering new markets and lowers the overall rate of creative destruction.


    Scope of Project

    Subject Terms:  View help for Subject Terms innovation; market power
    JEL Classification:  View help for JEL Classification
          O40 Economic Growth and Aggregate Productivity: General


    Related Publications

    Download this project

    Published Versions

    V1 [2023-12-12]

    Export Metadata

    Dublin Core

    DDI 2.5

    Report a Problem

    Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

    This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.