EconStor >
Bank of Canada, Ottawa >
Bank of Canada Working Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/53949
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorCao, Shutaoen_US
dc.date.accessioned2011-12-15T12:58:38Z-
dc.date.available2011-12-15T12:58:38Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/53949-
dc.description.abstractThe author studies the effects of capital reallocation (the flow of productive capital across firms and establishments mainly through changes in ownership) on aggregate labour productivity. Capital reallocation is an important activity in the United States: on average, its total value is 34 per cent of U.S. GDP. Firms with lower productivity are more likely to be reallocated to (i.e., bought by) more productive firms. Reallocated establishments experience an increase in productivity. The author develops a dynamic model of capital reallocation and compares its predictions with U.S. data. In the model, limited participation in acquisition markets by heterogeneous firms results in an increase in aggregate productivity. With reasonably chosen parameter values, policy experiments show that the increased reallocation of capital and labour contributed as much as a 17 per cent improvement in aggregate labour productivity in the mid-1980s. When a positive total-factor-productivity shock occurs, in steady state the increase in aggregate productivity arises entirely from this shock, and reallocation is unaffected.en_US
dc.language.isoengen_US
dc.publisherBank of Canada Ottawaen_US
dc.relation.ispartofseriesBank of Canada Working Paper 2008,38en_US
dc.subject.jelE22en_US
dc.subject.jelL16en_US
dc.subject.ddc330en_US
dc.subject.keywordProductivityen_US
dc.subject.keywordEconomic modelsen_US
dc.subject.stwUnternehmensentwicklungen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwÜbernahmeen_US
dc.subject.stwEigentümeren_US
dc.subject.stwUSAen_US
dc.titleA model of costly capital reallocation and aggregate productivityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn584977247en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Bank of Canada Working Papers

Files in This Item:
File Description SizeFormat
584977247.pdf336.03 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.