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dc.contributor.authorDe Ridder, M.
dc.date.accessioned2022-01-07T15:43:00Z
dc.date.available2022-01-07T15:43:00Z
dc.date.issued2019-03-25
dc.identifier.otherCWPE1931
dc.identifier.otherC-INET1908
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/332313
dc.description.abstractThis paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs – such as software – can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a significant decline in productivity growth, consistent with the empirical trends observed since the mid-1990s.
dc.publisherFaculty of Economics, University of Cambridge
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.relation.ispartofseriesCambridge-INET Working Paper Series
dc.rightsAll Rights Reserved
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/
dc.subjectProductivity
dc.subjectGrowth
dc.subjectBusiness Dynamism
dc.subjectIntangible Inputs
dc.subjectMarket Power
dc.titleMarket Power and Innovation in the Intangible Economy
dc.typeWorking Paper
dc.identifier.doi10.17863/CAM.79759
datacite.isnewversionof.doi10.17863/CAM.38666


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