Does market power affect economic growth?

There is accumulating evidence that the market power of firms - as proxied by their profits or the markup they charge over marginal cost - has risen over the last 15 or 30 years. While some market power may be necessary to create incentives for innovation, it is possible that there is “too much” market power and that this is limiting growth. At the same time, market power affects how we measure economic growth, and so the effect of rising market power isn’t immediately obvious.

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  1. 2018.   Ryan A. Decker and John C. Haltiwanger and Ron S. Jarmin and Javier Miranda.   "Changing Business Dynamism and Productivity, Shocks vs. Responsiveness". National Bureau of Economic Research, Inc   Link
  2. 2017.   David Rezza Baqaee and Emmanuel Farhi.   "Productivity and Misallocation in General Equilibrium.". National Bureau of Economic Research   Link
  3. 2017.   Tasso Adamopoulos and Loren Brandt and Jessica Leight and Diego Restuccia.   "Misallocation, Selection and Productivity, A Quantitative Analysis with Panel Data from China". University of Toronto, Department of Economics   Link
  4. 2017.   Ryan A. Decker and John Haltiwanger and Ron S. Jarmin and Javier Miranda.   "Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown".   American Economic Review, 107(5):322-326.   Link
  5. 2017.   De Loecker, Jan and Eeckhout, Jan.   "The Rise of Market Power and the Macroeconomic Implications". National Bureau of Economic Research   Link
  6. 2017.   Joan Hamory Hicks and Marieke Kleemans and Nicholas Y. Li and Edward Miguel.   "Reevaluating Agricultural Productivity Gaps with Longitudinal Microdata". National Bureau of Economic Research   Link
  7. 2016.   Simeon D. Alder.   "In the Wrong Hands, Complementarities, Resource Allocation, and TFP".   American Economic Journal, Macroeconomics, 8(1):199-241.   Link
  8. 2016.   Ryan A. Decker and John Haltiwanger and Ron S. Jarmin and Javier Miranda.   "Declining Business Dynamism, What We Know and the Way Forward".   American Economic Review, 106(5):203-207.   Link
  9. 2015.   John Haltiwanger.   "Job Creation, Job Destruction, and Productivity Growth, The Role of Young Businesses".   Annual Review of Economics, 7(1):341-358.   Link
  10. 2015.   Hsieh, Chang-Tai and Moretti, Enrico.   "Housing Constraints and Spatial Misallocation". National Bureau of Economic Research   Link
  11. 2014.   Tasso Adamopoulos and Diego Restuccia.   "The Size Distribution of Farms and International Productivity Differences".   American Economic Review, 104(6):1667-97.   Link
  12. 2014.   Ryan Decker and John Haltiwanger and Ron Jarmin and Javier Miranda.   "The Role of Entrepreneurship in US Job Creation and Economic Dynamism".   Journal of Economic Perspectives, 28(3):3-24.   Link
  13. 2013.   Nicolas Ziebarth.   "Are China and India Backwards? Evidence from the 19th Century U.S. Census of Manufactures".   Review of Economic Dynamics, 16(1):86-99.
  14. 2013.   Michael Peters.   "Heterogeneous mark-ups, growth and endogenous misallocation". London School of Economics and Political Science, LSE Library
  15. 2013.   Eric Bartelsman and John Haltiwanger and Stefano Scarpetta.   "Cross-Country Differences in Productivity, The Role of Allocation and Selection".   American Economic Review, 103(1):305-34.
  16. 2013.   Petrin, Amil and Jagadeesh Srinivasan.   "Estimating Lost Output from Allocative Inefficiency, with Application to Chile and Firing Costs".   Review of Economics and Statistics, 95(1):286-301.
  17. 2013.   Buera, Francisco J. and Yongseok Shin.   "Financial Frictions and the Persistence of History, A Quantitative Exploration".   Journal of Political Economy, 121(2):221-272.
  18. 2012.   Jan {De Loecker} and Frederic Warzynski.   "Markups and Firm-Level Export Status".   American Economic Review, 102(6):2437-71.   Link
  19. 2011.   Amil Petrin and Jerome Reiter and Kirk White.   "The Impact of Plant-level Resource Reallocations and Technical Progress on U.S. Macroeconomic Growth".   Review of Economic Dynamics, 14(1):3-26.
  20. 2011.   De Loecker, Jan.   "Recovering markups from production data".   International Journal of Industrial Organization, 29(3):350-355.   Link
  21. 2011.   Charles I. Jones.   "Misallocation, Economic Growth, and Input-Output Economics".   NBER Working Papers, .
  22. 2011.   Chari, A. V..   "Identifying the Aggregate Productivity Effects of Entry and Size Restrictions, An Empirical Analysis of License Reform in India".   American Economic Journal, Macroeconomics, 3:66-96.
  23. 2011.   Francisco J. Buera and Joseph P. Kaboski and Yongseok Shin.   "Finance and Development, A Tale of Two Sectors".   American Economic Review, 101(5):1964-2002.
  24. 2011.   John Fernald and Brent Neiman.   "Growth Accounting with Misallocation, or, Doing Less with More in Singapore".   American Economic Journal, Macroeconomics, 3(2):29-74.
  25. 2009.   Hsieh, Chang-Tai and Peter J. Klenow.   "Misallocation and Manufacturing TFP in China and India".   Quarterly Journal of Economics, 124(4):1403--1448.
  26. 2008.   Nezih Guner and Gustavo Ventura and Xu Yi.   "Macroeconomic Implications of Size-Dependent Policies".   Review of Economic Dynamics, 11(4):721-744.
  27. 2008.   Lucia Foster and John Haltiwanger and Chad Syverson.   "Reallocation, Firm Turnover, and Efficiency, Selection on Productivity or Profitability?".   American Economic Review, 98(1):394-425.
  28. 2008.   Christopher B. Barrett and Shane M. Sherlund and Akinwumi A. Adesina.   "Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture".   Agricultural Economics, 38(1):21-34.   Link
  29. 2008.   Restuccia, Diego and Richard Rogerson.   "Policy Distortions and Aggregate Productivity with Heterogeneous Plants".   Review of Economic Dynamics, 11(4):707-720.
  30. 2006.   Lucia Foster and John Haltiwanger and C. J. Krizan.   "Market Selection, Reallocation, and Restructuring in the U.S. Retail Trade Sector in the 1990s".   The Review of Economics and Statistics, 88(4):748-758.   Link
  31. 2005.   Banerjee, Abhijit V. and Esther Duflo.   "Growth Theory through the Lens of Development Economics".   Handbook of Economic Growth.
  32. 2004.   Syverson, Chad.   "Product Substitutability and Productivity Dispersion".   Review of Economics and Statistics, 86(2):534-550.
  33. 2002.   Basu, Susanto and John Fernald.   "Aggregate Productivity and Aggregate Technology".   European Economic Review, 46:963-991.
  34. 1989.   Robert E. Hall.   "Invariance Properties of Solow's Productivity Residual". National Bureau of Economic Research   Link
  35. 1988.   Hall, Robert E.   "The Relation between Price and Marginal Cost in U.S. Industry".   Journal of Political Economy, 96(5):921-47.   Link

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