An Empirical Model of Growth Through Product Innovation

Rasmus Lentz and Dale Mortensen

No 1685, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. The purpose of the paper is to estimate the structure of an equilibrium model of growth through innovation that explains these facts. The model is a modified version of the Schumpeterian theory of firm evolution and growth developed by Klette and Kortum (2004). The data set is a panel of Danish firms than includes information on value added, employment, and wages. The model's fit is good and the structural parameter estimates have interesting implications for the aggregate growth rate and the contribution of worker reallocation to it.

Keywords: labor productivity growth; worker reallocation; firm dynamics; firm panel data estimation (search for similar items in EconPapers)
JEL-codes: E22 E24 J23 J24 L11 L25 O3 O4 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2005-07
New Economics Papers: this item is included in nep-dge, nep-ino and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: An Empirical Model of Growth Through Product Innovation (2008)
Working Paper: An Empirical Model of Growth Through Product Innovation (2005)
Working Paper: An Empirical Model of Growth Through Product Innovation (2005)
Working Paper: An Empirical Model of Growth Through Product Innovation (2005)
Working Paper: An Empirical Model of Growth Through Product Innovation (2005)
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