TY - JOUR
AU - Rossi, Lorenza
AB - This paper considers a two-sector real business cycle model augmented with firm heterogeneity and firm dynamics, and studies the steady state and dynamic properties of the model in response to a decline in the relative price of investment. It shows that both firm heterogeneity and entry play a crucial role in the decline in the labour share and the increase in capital intensity observed in the US economy. Using ORBIS firm-level data of the US economy, the paper finds robust evidence consistent with the mechanisms described in the model.
TI - Firm Ex Ante Heterogeneity, Entry and the Labour Share
JO - The Economic Journal
DO - 10.1093/ej/ueac054
DA - 2022-09-04
UR - https://www.deepdyve.com/lp/oxford-university-press/firm-ex-ante-heterogeneity-entry-and-the-labour-share-r28SZkCiPl
SP - 235
EP - 257
VL - 133
IS - 649
DP - DeepDyve
ER -