NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An Empirical Model of Growth Through Product Innovation

Rasmus Lentz, Dale T. Mortensen

NBER Working Paper No. 11546
Issued in August 2005
NBER Program(s):   EFG

Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. The purpose of the paper is to estimate the structure of an equilibrium model of growth through innovation that explains these facts. The model is a modified version of the Schumpeterian theory of firm evolution and growth developed by Klette and Kortum (2004). The data set is a panel of Danish firms than includes information on value added, employment, and wages. The model's fit is good and the structural parameter estimates have interesting implications for the aggregate growth rate and the contribution of worker reallocation to it.

download in pdf format
   (393 K)

email paper

This paper is available as PDF (393 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Lentz, Rasmus and Dale T. Mortensen. “An Empirical Model of Growth through Product Innovation.” Econometrica 76, 6 (November 2008): 1317-73.

Users who downloaded this paper also downloaded these:
Mortensen w15033 Wage Dispersion in the Search and Matching Model with Intra-Firm Bargaining
Mortensen and Nagypal w11692 More on Unemployment and Vacancy Fluctuations
Mortensen w13287 Island Matching
Hall, Lotti, and Mairesse w14594 Innovation and Productivity in SMEs: Empirical Evidence for Italy
Barlevy w10741 On the Timing of Innovation in Stochastic Schumpeterian Growth Models
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us