Common Ownership and the Secular Stagnation Hypothesis

José Azar and Xavier Vives

AEA Papers and Proceedings, 2019, vol. 109, 322-26

Abstract: We extend the model in Azar and Vives (2018) to allow for investment and show that higher effective market concentration (augmented by common ownership) leads to lower equilibrium wages, real interest rates, lower output, lower labor share, and lower capital share as well (under a mild condition). We calibrate a multisector sector model of the US economy and find that the rise in common ownership may account for the broad evolution of labor and capital shares in the period 1985-2015 while measured increases in concentration cannot (under plausible values for elasticity parameters).

JEL-codes: E25 E32 G32 L11 O47 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pandp.20191066
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pandp.20191066 (application/pdf)
https://www.aeaweb.org/doi/10.1257/pandp.20191066.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/pandp.20191066.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
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:apandp:v:109:y:2019:p:322-26

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

Access Statistics for this article

AEA Papers and Proceedings is currently edited by William Johnson and Kelly Markel

More articles in AEA Papers and Proceedings from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().