Aggregate dynamics and microeconomic heterogeneity: the role of vintage technology

Giuseppe Fiori and Filippo Scoccianti ()
Additional contact information
Filippo Scoccianti: Bank of Italy

No 651, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We study how the timing of technology adoption through capital accumulation shapes firm-level productivity dynamics and quantify its aggregate implications in a model of heterogeneous firms. Using data on the census of incorporated Italian firms and exploiting the lumpiness of capital accumulation, we document that large investment episodes lead to productivity gains at the firm and sectoral level due to vintage effects. In a general equilibrium model of firm heterogeneity, we find that the presence of vintage technology constitutes a powerful microeconomic-based amplification mechanism of aggregate shocks relative to a benchmark real business cycle model.

Keywords: business cycles; (S; s) policies; vintage effects; firm heterogeneity. (search for similar items in EconPapers)
JEL-codes: D24 E22 E32 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-bec, nep-dge, nep-eff, nep-eur, nep-lab, nep-mac and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/qef/2021-0651/QEF_651_21.pdf (application/pdf)

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:bdi:opques:qef_651_21

Access Statistics for this paper

More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().