This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 97 No. 5 (December 2007)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Establishment Size Dynamics in the Aggregate Economy

Article Citation

Rossi-Hansberg, Esteban, and Mark L. J. Wright. 2007. "Establishment Size Dynamics in the Aggregate Economy." American Economic Review, 97(5): 1639-1666.

DOI: 10.1257/aer.97.5.1639

Abstract

This paper presents a theory of establishment size dynamics based on the accumulation of industry-specific human capital that simultaneously rationalizes the economy- wide facts on establishment growth rates, exit rates, and size distributions. The theory predicts that establishment growth and net exit rates should decline faster with size, and that the establishment size distribution should have thinner tails, in sectors that use specific human capital less intensively. We establish that there is substantial cross-sector heterogeneity in US establishment size dynamics and distributions, which is well explained by relative factor intensities. (JEL L11 , L16, L25).

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (1.68 MB)

Authors

Rossi-Hansberg, Esteban (Princeton University)
Wright, Mark L. J. (University of California, Los Angeles)

JEL Classifications

L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L16: Industrial Organization and Macroeconomic Industrial Structure; Industrial Price Indices
L25: Firm Performance: Size, Diversification, and Scope


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us