EconPapers    
Economics at your fingertips  
 

A Theory of Falling Growth and Rising Rents

Philippe Aghion, Antonin Bergeaud, Huiyu Li, Peter Klenow and Timo Boppart
Additional contact information
Philippe Aghion: College de France
Peter Klenow: Stanford University

No 458, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: Growth has fallen in the U.S., while firm concentration and profits have risen. Labor's share has fallen, mostly due to rising market share of low labor share firms. We propose a theory for these trends in which the driving force is falling firm-level costs of spanning multiple markets, perhaps due to ICT advances. The most efficient firms spread into new markets in response, generating a temporary burst of growth but also erecting barriers to future innovation if their efficiency is difficult for other firms to imitate. Despite rising rents, even the efficient firms do less innovation in the long run as they are more likely to face stiff competition if they enter markets against each other.

Date: 2019
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ict and nep-ino
References: Add references at CitEc
Citations: View citations in EconPapers (107)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2019/paper_458.pdf (application/pdf)

Related works:
Journal Article: A Theory of Falling Growth and Rising Rents (2023) Downloads
Working Paper: A Theory of Falling Growth and Rising Rents (2023)
Working Paper: A Theory of Falling Growth and Rising Rents (2023)
Working Paper: A Theory of Falling Growth and Rising Rents (2022) Downloads
Working Paper: A Theory of Falling Growth and Rising Rents (2019) Downloads
Working Paper: A Theory of Falling Growth and Rising Rents (2019) Downloads
Working Paper: A Theory of Falling Growth and Rising Rents (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:458

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann (chuichuiche@gmail.com).

 
Page updated 2025-03-23
Handle: RePEc:red:sed019:458