The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand, and Wedges.

What determines the distribution of establishments in terms of size and life-cycle growth? How are those determinants related to aggregate productivity? We provide novel answers by developing a framework that uses price and quantity information on establishments' outputs and inputs to jointly estima...

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Publicado en:Review of Economic Studies Vol. 91; no. 1; pp. 259 - 301
Autores principales: Eslava, Marcela, Haltiwanger, John, Urdaneta, Nicolas
Formato: Artículo
Publicado: Oxford University Press / USA Jan2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2024
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      pub: Oxford University Press / USA
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        10.1093/restud/rdad029
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        atl: The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand, and Wedges.
      aug:
        au:
          Eslava, Marcela
          Haltiwanger, John
          Urdaneta, Nicolas
        affil:
          Universidad de Los Andes
          University of Maryland at College Park
          Duke University and Universidad de Los Andes
      su:
        Industrial productivity
        Plant growth
        Plant productivity
        Wedges
        Parameter estimation
        Business size
        Life cycle costing
      sug:
        subj:
          Industrial productivity
          Floriculture Production
          Plant growth
          Plant productivity
          Wedges
          Parameter estimation
          Business size
          Life cycle costing
      keyword:
        Allocative efficiency
        Markups
        Productivity
        Quality
        Size distribution of manufacturing plants
        Allocative efficiency
        Markups
        Productivity
        Quality
        Size distribution of manufacturing plants
      ab: What determines the distribution of establishments in terms of size and life-cycle growth? How are those determinants related to aggregate productivity? We provide novel answers by developing a framework that uses price and quantity information on establishments' outputs and inputs to jointly estimate the demand and production parameters, and subsequently, establishments' quality-adjusted productivity, deriving both micro-level and aggregate implications. We find that the dominant source of variation in establishment size is variation in quality/product appeal but that variation in technical efficiency plays an important supporting role. Multiple factors dampen dispersion in establishment size including dispersion in input (quality-adjusted) prices, markups, and residual wedges. Relatively moderate dampening factors induce large aggregate allocative efficiency losses relative to their absence. We show that joint estimation of the parameters of the demand and production function crucially affects inferences on the determinants of the size distribution of firms and their implications for aggregate productivity.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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