Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. The purpose of the paper is to estimate the structure of an equilibrium model of growth through innovation. The model is a modified version of the Schumpeterian theory of firm evolution and growth developed by Klette and Kortum (2002). The data set is a panel of Danish firms than includes information on value added, employment, and wages. The model’s fit is good and the structural parameter estimates have interesting implications for the aggregate growth rate and the contribution of worker reallocation to it.
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"Indirect Inference,"
Journal of Applied Econometrics,
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Gourieroux, C. & Monfort, A. & Renault, E., 1992.
"Indirect Inference,"
Papers
92.279, Toulouse - GREMAQ.
Gourieroux, C. & Monfort, A & Renault, E., 1992.
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Frederiksen, Anders & Westergaard-Nielsen, Niels, 2002.
"Where did they go ?,"
CLS Working Papers
01-11, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
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Rasmus Lentz & Dale T. Mortensen, 2005.
"Productivity Growth And Worker Reallocation,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 731-749, 08.
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