Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192801 
Year of Publication: 
2015
Series/Report no.: 
Discussion Papers No. 819
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
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.
Subjects: 
Productivity
Profitability
Aggregation
JEL: 
D24
J24
L25
O47
C43
Document Type: 
Working Paper

Files in This Item:
File
Size
755.36 kB





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