Product diversification, creation and destruction: Micro evidence and aggregate implications

Virgiliu Midrigan, Daniel Xu and Chris Edmond
Additional contact information
Daniel Xu: NYU

No 125, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: using a novel plant-level dataset from Taiwan (1992-2004), that new product introductions are a key contributor to increases in plant-level factor productivity. We then formulate and calibrate a span-of-control model of product choice and firm dynamics in which new products embody the frontier of knowledge and firms can introduce new products subject to a fixed cost as well as discard old products. We use the model to quantify the importance of the new product margin in accounting for aggregate TFP growth, as well as to quantify the welfare losses from frictions that inhibit the process of product creation and destruction.

Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:red:sed009:125

Access Statistics for this paper

More papers in 2009 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().