Missing growth from creative destruction

Aghion, Philippe; Bergeaud, Antonin; Boppart, Timo; Klenow, Pete; Li, Huiyu

Missing growth from creative destruction

Philippe Aghion, Antonin Bergeaud, Timo Boppart, Pete Klenow and Huiyu Li

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Statistical agencies typically impute inflation for disappearing products based on surviving products, which may result in overstated inflation and understated growth. Using U.S. Census data, we apply two ways of assessing the magnitude of “missing growth” for private nonfarm businesses from 1983– 2013. The first approach exploits information on the market share of surviving plants. The second approach applies indirect inference to firm-level data. We find: (i) missing growth from imputation is substantial — at least 0.6 percentage points per year; and (ii) most of the missing growth is due to creative destruction (as opposed to new varieties)

JEL-codes: J1 (search for similar items in EconPapers)
Date: 2017-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://eprints.lse.ac.uk/86606/ Open access version. (application/pdf)

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:86606

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().