Discussion Papers no. 819
Selection on profitability and not productivity
On measuring the contribution from firm turnover to aggregate productivity growth
Foster et al. (2001) outline a framework that is commonly used to identify the contribution from firm turnover to aggregate productivity growth.
Foster et al. (2001) outline a framework that is commonly used to identify the contribution from firm turnover to aggregate productivity growth. The framework is not derived from economic theory and it implies that productivity levels determine the contribution from reallocation and firm turnover. In this paper, I outline an index for aggregate productivity growth based on economic theory. In contrast to common beliefs, I show that the contribution from firm turnover to aggregate productivity growth should be based on the profitability, and not the productivity, of these firms.
About the publication
- Title
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On measuring the contribution from firm turnover to aggregate productivity growth. Selection on profitability and not productivity
- Author
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Thomas von Brasch
- Series and number
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Discussion Papers no. 819
- Publisher
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Statistics Norway
- ISSN
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1892-753X
- Language
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English
- About Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Contact
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Statistics Norway's Information Centre