From Good to Bad Concentration? U.S. Industries over the Past 30 Years
This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.
Chapter in forthcoming NBER book NBER Macroeconomics Annual 2019, volume 34, Martin S. Eichenbaum, Erik Hurst, and Jonathan A. Parker, editors
We study the evolution of profits, investment and market shares in US industries over the past 40 years. During the 1990s, and at low levels of initial concentration, we find evidence of efficient concentration driven by tougher price competition, intangible investment, and increasing productivity of leaders. After 2000, however, the evidence suggests inefficient concentration, decreasing competition and increasing barriers to entry, as leaders become more entrenched and concentration is associated with lower investment, higher prices and lower productivity growth.
From Good to Bad Concentration? U.S. Industries over the past 30 years, Matias Covarrubias, Germán Gutiérrez, Thomas Philippon
Commentary on this chapter:
Comment, Janice C. Eberly
Comment, Chad Syverson