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  • grazziniRossi_EJ_DOI_ueac054

    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in BritishThe Economic Journal following peer review. The definitive publisher-authenticated version Jakob Grazzini, Lorenza Rossi, Firm Ex Ante Heterogeneity, Entry and the Labour Share, The Economic Journal, Volume 133, Issue 649, January 2023, Pages 235–257, https://doi.org/10.1093/ej/ueac054 is available online at: https://academic.oup.com/ej/article-abstract/133/649/235/6691719

    Accepted author manuscript, 447 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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Firm Ex Ante Heterogeneity, Entry, and the Labour Share

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>1/01/2023
<mark>Journal</mark>Economic Journal
Issue number649
Volume133
Number of pages23
Pages (from-to)235-257
Publication StatusPublished
Early online date4/09/22
<mark>Original language</mark>English

Abstract

This paper considers a two-sector RBC 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.

Bibliographic note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in BritishThe Economic Journal following peer review. The definitive publisher-authenticated version Jakob Grazzini, Lorenza Rossi, Firm Ex Ante Heterogeneity, Entry and the Labour Share, The Economic Journal, Volume 133, Issue 649, January 2023, Pages 235–257, https://doi.org/10.1093/ej/ueac054 is available online at: https://academic.oup.com/ej/article-abstract/133/649/235/6691719

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