Firm Dynamics and Growth Measurement in France

Philippe Aghion, Antonin Bergeaud, Timo Boppart and Simon Bunel

Working papers from Banque de France

Abstract: Statistical agencies typically impute inflation for disappearing products based on surviving products, which may result in overstated inflation and understated growth. This paper uses the theory and methodology developed by Aghion et al. (2017) to quantify in the case of France how much of productivity growth is missed by statistical offices because of this. Using the census of plants in France, we find that from 2004 to 2015, about 0.5 percentage point of real output growth per year is not taken into account, which is about the same as what was found in the U.S. While this result suggests that missing growth from creative destruction could structurally be the same in different countries, we show that they in fact hide different underlying establishment and firm's lifecycle dynamics in the two countries.

Keywords: Growth; Price measurement; Firm dynamic; Lifecycle of plants (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2018
New Economics Papers: this item is included in nep-ent and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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https://publications.banque-france.fr/sites/defaul ... ocuments/wp676_0.pdf (application/pdf)

Related works:
Journal Article: Firm Dynamics and Growth Measurement in France (2018)
Working Paper: Firm Dynamics and Growth Measurement in France (2018)
Working Paper: Firm Dynamics and Growth Measurement in France (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:676

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