EconPapers    
Economics at your fingertips  
 

Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown

Ryan A. Decker, John Haltiwanger, Ron Jarmin () and Javier Miranda

American Economic Review, 2017, vol. 107, issue 5, 322-26

Abstract: A large literature documents declining measures of business dynamism including high-growth young firm activity and job reallocation. A distinct literature describes a slowdown in the pace of aggregate labor productivity growth. We relate these patterns by studying changes in productivity growth from the late 1990s to the mid 2000s using firm-level data. We find that diminished allocative efficiency gains can account for the productivity slowdown in a manner that interacts with the within-firm productivity growth distribution. The evidence suggests that the decline in dynamism is reason for concern and sheds light on debates about the causes of slowing productivity growth.

JEL-codes: D22 D24 D61 J24 L25 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.p20171020
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/articles?id=10.1257/aer.p20171020 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... RZThA1Gy_c1RcIb6zVkT (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... dCVahpXndZ0kfP_vgs-h (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown (2017) Downloads
Working Paper: Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown (2017) 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:aea:aecrev:v:107:y:2017:i:5:p:322-26

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

Access Statistics for this article

American Economic Review is currently edited by Pinelopi Koujianou Goldberg

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().

 
Page updated 2017-12-18
Handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:322-26