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Fading Stars

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  • Germán Gutiérrez
  • Thomas Philippon

Abstract

We study the evolution of superstar firms in the US economy over the past 60 years. Contrary to common wisdom, superstar firms have not become larger or more productive but have become more profitable. The contribution of star firms to aggregate US productivity growth has fallen over time, from about 72 basis points per year before 2000 down to about 43 afterwards.

Suggested Citation

  • Germán Gutiérrez & Thomas Philippon, 2019. "Fading Stars," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 312-316, May.
    • Handle: RePEc:aea:apandp:v:109:y:2019:p:312-16
    Note: DOI: 10.1257/pandp.20191065
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191065
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    Cited by:

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    2. Joshua Brault & Hashmat Khan, 2021. "Large Firms and the Cyclicality of US Labour Productivity," Carleton Economic Papers 21-02, Carleton University, Department of Economics, revised 27 May 2021.
    3. Igna, Ioana & Venturini, Francesco, 2023. "The determinants of AI innovation across European firms," Research Policy, Elsevier, vol. 52(2).
    4. Schlingemann, Frederik P. & Stulz, René M., 2022. "Have exchange-listed firms become less important for the economy?," Journal of Financial Economics, Elsevier, vol. 143(2), pages 927-958.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • N82 - Economic History - - Micro-Business History - - - U.S.; Canada: 1913-
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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