Contracts, Firm Dynamics and Aggregate Productivity
We construct a framework of firm dynamics to evaluate the impact of the enforcement of contracts between final goods producers and their intermediate goods suppliers on firm life-cycle growth, technology accumulation and aggre-gate productivity. We build upon the tractable contracts model of Acemogl...
- Autores:
-
Lopez Martin, Bernabe
Perez Reyna, David
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2018
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- spa
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/41046
- Acceso en línea:
- http://hdl.handle.net/1992/41046
- Palabra clave:
- Size dependent-distortions
Contracts
Aggregate productivity
firm dynamics
D86, E23, O11, O40
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
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Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Lopez Martin, Bernabe84d2fd41-98f5-4563-ba47-8447c194243f500Perez Reyna, Davida645aee0-7104-43aa-b5da-e26e373709a64002020-07-28T17:15:52Z2020-07-28T17:15:52Z20181657-5334http://hdl.handle.net/1992/410461657-719110.57784/1992/41046instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/We construct a framework of firm dynamics to evaluate the impact of the enforcement of contracts between final goods producers and their intermediate goods suppliers on firm life-cycle growth, technology accumulation and aggre-gate productivity. We build upon the tractable contracts model of Acemoglu et al. (2007), where the final goods firm chooses technology in contractible activi- ties conducted by suppliers of intermediate inputs. Suppliers select investments in noncontractible activities, anticipating the pay offs of a bargaining game with the producer of the final goods. We show that contractual incompleteness im-plies a wedge on profits for producers of final goods, potentially dependent on the level of technology of the firm, which disincentives technology accumulation at the firm level in our dynamic model. We evaluate this mechanism in general equilibrium to analyze its quantitative implications. Our model accounts for differences in output per worker of up to 33 percent across economies with complete and incomplete contracts. The impact on firm life-cycle growth, the age and size distribution of firms is quantitatively significant.28 páginasspaUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No. 47 Octubre de 2018https://ideas.repec.org/p/col/000089/016821.htmlContracts, Firm Dynamics and Aggregate ProductivityDocumento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPSize dependent-distortionsContractsAggregate productivityfirm dynamicsD86, E23, O11, O40Facultad de EconomíaPublicationTHUMBNAILdcede2018-47.pdf.jpgdcede2018-47.pdf.jpgIM Thumbnailimage/jpeg10625https://repositorio.uniandes.edu.co/bitstreams/e77bd0e2-41e8-4084-9f81-2d2c7e5e2b2d/download91432ffa0ca8454dcfd5cf21e0979136MD55TEXTdcede2018-47.pdf.txtdcede2018-47.pdf.txtExtracted texttext/plain56258https://repositorio.uniandes.edu.co/bitstreams/baea8e43-9c8d-4053-8814-e108c8c12e46/download436a267c6ac6a718ecc2d818ba5264c1MD54ORIGINALdcede2018-47.pdfdcede2018-47.pdfapplication/pdf1415971https://repositorio.uniandes.edu.co/bitstreams/628ebbf9-d3fe-47ca-8b07-9efb96866162/download4b6f719865ce04222d35abb2d8fb68b8MD511992/41046oai:repositorio.uniandes.edu.co:1992/410462024-06-04 15:44:22.782http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co |
dc.title.none.fl_str_mv |
Contracts, Firm Dynamics and Aggregate Productivity |
title |
Contracts, Firm Dynamics and Aggregate Productivity |
spellingShingle |
Contracts, Firm Dynamics and Aggregate Productivity Size dependent-distortions Contracts Aggregate productivity firm dynamics D86, E23, O11, O40 |
title_short |
Contracts, Firm Dynamics and Aggregate Productivity |
title_full |
Contracts, Firm Dynamics and Aggregate Productivity |
title_fullStr |
Contracts, Firm Dynamics and Aggregate Productivity |
title_full_unstemmed |
Contracts, Firm Dynamics and Aggregate Productivity |
title_sort |
Contracts, Firm Dynamics and Aggregate Productivity |
dc.creator.fl_str_mv |
Lopez Martin, Bernabe Perez Reyna, David |
dc.contributor.author.none.fl_str_mv |
Lopez Martin, Bernabe Perez Reyna, David |
dc.subject.keyword.none.fl_str_mv |
Size dependent-distortions Contracts Aggregate productivity firm dynamics |
topic |
Size dependent-distortions Contracts Aggregate productivity firm dynamics D86, E23, O11, O40 |
dc.subject.jel.none.fl_str_mv |
D86, E23, O11, O40 |
description |
We construct a framework of firm dynamics to evaluate the impact of the enforcement of contracts between final goods producers and their intermediate goods suppliers on firm life-cycle growth, technology accumulation and aggre-gate productivity. We build upon the tractable contracts model of Acemoglu et al. (2007), where the final goods firm chooses technology in contractible activi- ties conducted by suppliers of intermediate inputs. Suppliers select investments in noncontractible activities, anticipating the pay offs of a bargaining game with the producer of the final goods. We show that contractual incompleteness im-plies a wedge on profits for producers of final goods, potentially dependent on the level of technology of the firm, which disincentives technology accumulation at the firm level in our dynamic model. We evaluate this mechanism in general equilibrium to analyze its quantitative implications. Our model accounts for differences in output per worker of up to 33 percent across economies with complete and incomplete contracts. The impact on firm life-cycle growth, the age and size distribution of firms is quantitatively significant. |
publishDate |
2018 |
dc.date.issued.none.fl_str_mv |
2018 |
dc.date.accessioned.none.fl_str_mv |
2020-07-28T17:15:52Z |
dc.date.available.none.fl_str_mv |
2020-07-28T17:15:52Z |
dc.type.spa.fl_str_mv |
Documento de trabajo |
dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_970fb48d4fbd8a85 |
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info:eu-repo/semantics/workingPaper |
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http://purl.org/coar/resource_type/c_8042 |
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1657-5334 |
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http://hdl.handle.net/1992/41046 |
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1657-7191 |
dc.identifier.doi.none.fl_str_mv |
10.57784/1992/41046 |
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instname:Universidad de los Andes |
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reponame:Repositorio Institucional Séneca |
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http://hdl.handle.net/1992/41046 |
dc.language.iso.none.fl_str_mv |
spa |
language |
spa |
dc.relation.ispartofseries.none.fl_str_mv |
Documentos CEDE No. 47 Octubre de 2018 |
dc.relation.repec.spa.fl_str_mv |
https://ideas.repec.org/p/col/000089/016821.html |
dc.rights.uri.*.fl_str_mv |
http://creativecommons.org/licenses/by-nc-nd/4.0/ |
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info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.extent.none.fl_str_mv |
28 páginas |
dc.publisher.none.fl_str_mv |
Universidad de los Andes, Facultad de Economía, CEDE |
publisher.none.fl_str_mv |
Universidad de los Andes, Facultad de Economía, CEDE |
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Universidad de los Andes |
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