Contracts, Firm Dynamics, and Aggregate Productivity
Bernabe Lopez-Martin () and
David Perez-Reyna ()
Working Papers Central Bank of Chile from Central Bank of Chile
We construct a firm-dynamics framework to evaluate the impact of the enforcement of contracts between final goods producers and intermediate goods suppliers on firm life-cycle growth, technology accumulation, and aggregate productivity. We show that contractual incompleteness implies a wedge on profits, which disincentives technology accumulation and is potentially correlated with technology, in addition to wedges on production decisions. We find that our model accounts for differences in output per worker of up to 33 percent across economies. The impact on firm life-cycle growth, the age and size distribution of firms is quantitatively significant.
New Economics Papers: this item is included in nep-bec, nep-cta, nep-dge and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Contracts, firm dynamics, and aggregate productivity (2021)
Working Paper: Contracts, Firm Dynamics and Aggregate Productivity (2019)
Working Paper: Contracts, Firm Dynamics and Aggregate Productivity (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:910
Access Statistics for this paper
More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Alvaro Castillo ().