Endogenous product turnover and macroeconomic dynamics

Masashige Hamano*, Francesco Zanetti

*この研究の対応する著者

研究成果: Article査読

16 被引用数 (Scopus)

抄録

This paper introduces endogenous product entry and exit based on creation and destruction of product variety in a general equilibrium model. Recessionary technology shocks induce exit of unprofitable products on impact, allocating resources towards more productive production lines. However, during the recovery phase, less productive production lines survive destruction, counteracting the original increase in productivity. The analysis shows that recoveries hinge on lower product destruction rather than higher product creation. We find that product heterogeneity and the persistence of technology shocks play a critical role for the cyclicality of product turnover. Endogenous product destruction is important to evaluate the effect of permanent policies of entry deregulation and subsidies aimed to stimulate the economy.

本文言語English
ページ(範囲)263-279
ページ数17
ジャーナルReview of Economic Dynamics
26
DOI
出版ステータスPublished - 2017 10月

ASJC Scopus subject areas

  • 経済学、計量経済学

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