What is the Relationship between Competition and Productivity
AbstractWe demonstrate the usefulness of our results by using them to shed light on the existing empirical evidence. In particular, we argue that the studies of Syverson (2004), Schmitz (2005), and Lagakos (2007) are examples of how differences in the market size affect productivity. Our results are consistent with the positive relationship between competition and productivity that these studies find. In contrast, the study of Aghion et al (2005) is an example of how differences in entry costs affect productivity. Our results are consistent with the inverted U shape relationship that this study finds.
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 1142.
Date of creation: 2009
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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0716, University of Zurich, Socioeconomic Institute, revised Jan 2010.
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- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
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