Superstar Firms and Aggregate Fluctuations
Qazi Haque,
Oscar Pavlov and
Mark Weder
School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy
Abstract:
The rise of market power in the last decades is primarily driven by the largest firms. We propose a theory of these superstar firms in which their technology involves the ability to produce multiple products. Superstars interact with smaller competitors and market share reallocations and product creation generate heterogeneous markup dynamics across firms. Higher market shares of superstars increase the parameter space for macroeconomic indeterminacy. Bayesian estimation of the general equilibrium model suggests the importance of the endogenous amplification of the product creation channel and animal spirits play a non-trivial role in driving U.S. business cycles.
Keywords: Superstars; Multi-product firms; Business cycles; Animal spirits; Bayesian estimation. (search for similar items in EconPapers)
Date: 2024-02
References: Add references at CitEc
Citations:
Downloads: (external link)
https://media.adelaide.edu.au/economics/papers/doc/wp2024-01.pdf (application/pdf)
Related works:
Working Paper: Superstar Firms and Aggregate Fluctuations (2024) 
Working Paper: Superstar firms and aggregate fluctuations (2024) 
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:adl:wpaper:2024-01
Access Statistics for this paper
More papers in School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy Contact information at EDIRC.
Bibliographic data for series maintained by Qazi Haque ().