The increasing presence of large firms and its consequences for US startup rates

Niklas Garnadt

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: While the significant decline in US startup rates over the past 30 years has raised concern about the health of the US economy its causes have not yet been fully understood. I document the concurrent increase in the size and presence of large firms in the US economy and link it to the decline in firm creation rates. I construct a simple model that rationalizes this channel by increases in the span of control of managers.

JEL-codes: E24 L25 L26 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-bec, nep-ent and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168091

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