Name File Type Size Last Modified
  codegen 07/19/2023 11:50:AM
  estimation 07/24/2023 04:51:AM
  output 07/19/2023 11:50:AM
  params 07/19/2023 11:32:PM
  transition 07/20/2023 02:51:AM
  utility functions 07/20/2023 07:28:AM
file10c_revision_firmintangibles_solverlaunch.m text/x-matlab 1.1 KB 07/19/2023 07:50:AM
file10d_revision_firmintangibles_solverengine.m text/x-matlab 6.5 KB 07/19/2023 07:50:AM
file10d_revision_firmintangibles_solverengine_multitype.m text/x-matlab 11.3 KB 07/19/2023 07:50:AM
file10e_revision_firmintangibles_chokeprices.m text/x-matlab 840 bytes 07/19/2023 07:50:AM
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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


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