What is the Relationship between Competition and Productivity
We 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.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
Web page: http://www.EconomicDynamics.org/
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