We study the evolution of super star firms in the U.S. economy over the past 60 years. Contrary to common wisdom, super stars firms have not become larger, have not become more productive, and the contribution of star firms to aggregate U.S. productivity growth has fallen by more than one third since 2000.
We are grateful to the Smith Richardson Foundation for a research grant, and to seminar participants at the NBER, University of Chicago, New York University, and the 2019 AEA meetings for stimulating discussions, to David Autor, Olivier Blanchard, Xavier Gabaix and John Van Reenen for their comments, and to Steve Davis for his comments, discussion, and suggestions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
GermÁn GutiÉrrez & Thomas Philippon, 2019. "Fading Stars," AEA Papers and Proceedings, vol 109, pages 312-316. citation courtesy of