From Good to Bad Concentration? U.S. Industries over the past 30 years

Matias Covarrubias, German Gutierrez () and Thomas Philippon ()

No 25983, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the evolution of profits, investment and market shares in US industries over the past 40 years. During the 1990’s, and at low levels of initial concentration, we find evidence of efficient concentration driven by tougher price competition, intangible investment, and increasing productivity of leaders. After 2000, however, the evidence suggests inefficient concentration, decreasing competition and increasing barriers to entry, as leaders become more entrenched and concentration is associated with lower investment, higher prices and lower productivity growth.

JEL-codes: D24 D4 K0 L0 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-com, nep-his and nep-law
Note: CF IO POL PR
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Published as From Good to Bad Concentration? US Industries over the Past 30 Years , Matias Covarrubias, Germán Gutiérrez, Thomas Philippon. in NBER Macroeconomics Annual 2019, volume 34 , Eichenbaum, Hurst, and Parker. 2020

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Chapter: From Good to Bad Concentration? US Industries over the Past 30 Years (2019)
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