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Value without Employment / Simcha Barkai, Stavros Panageas.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Barkai, Simcha.
Contributor:
National Bureau of Economic Research.
Panageas, Stavros.
Series:
Working Paper Series (National Bureau of Economic Research) no. w29414.
NBER working paper series no. w29414
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2021.
Summary:
Young firms' contribution to aggregate employment has been underwhelming. However, a similar trend is not apparent in their contribution to aggregate sales or aggregate stock market capitalization. We study the implications of the arrival of "low marginal - high average" revenue-product-of-labor firms in a stylized model of dynamic firm heterogeneity, and show that the model can account for a large number of facts related to the decline in "business dynamism". We study the long-term implications of the decline in business dynamism on the economy by providing analytical results that connect the decline in dynamism to the eventual decline of consumption.
Notes:
Print version record
October 2021.

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