Missing Growth from Creative Destruction

Philippe Aghion, Antonin Bergeaud, Timo Boppart, Peter J. Klenow and Huiyu Li

American Economic Review, 2019, vol. 109, issue 8, 2795-2822

Abstract: For exiting products, statistical agencies often impute inflation from surviving products. This understates growth if creatively-destroyed products improve more than surviving ones. If so, then the market share of surviving products should systematically shrink. Using entering and exiting establishments to proxy for creative destruction, we estimate missing growth in US Census data on non-farm businesses from 1983 to 2013. We find missing growth (i) equaled about one-half a percentage point per year; (ii) arose mostly from hotels and restaurants rather than manufacturing; and (iii) did not accelerate much after 2005, and therefore does not explain the sharp slowdown in growth since then.

JEL-codes: E23 E31 L14 L15 O30 O41 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aer.20171745
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Citations: View citations in EconPapers (64)

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Related works:
Working Paper: Missing Growth from Creative Destruction (2019)
Working Paper: Missing Growth from Creative Destruction (2019)
Working Paper: Missing Growth from Creative Destruction (2018)
Journal Article: Missing Growth from Creative Destruction (2017)
Working Paper: Missing Growth from Creative Destruction (2017)
Working Paper: Missing growth from creative destruction (2017)
Working Paper: Missing Growth from Creative Destruction (2017)
Working Paper: Missing growth from creative destruction (2017)
Working Paper: Missing Growth from Creative Destruction (2017)
Working Paper: Missing Growth from Creative Destruction (2017)
Working Paper: Missing Growth from Creative Destruction (2017)
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