"Superstar Firms: Equilibrium Instability and Cyclical Inequality"
Séminaire Oscar PAVLOV
Prochain séminaire du GAINS
Le 17 octobre 2023
Le prochain séminaire du GAINS a lieu 17 octobre 2023 de 10h30 à 12h00 dans la salle T204.
Oscar Pavlov (University of Tasmania) présentera un papier intitulé "Superstar Firms: Equilibrium Instability and Cyclical Inequality".
Abstract :
Recent empirical research has highlighted the significant rise of market power in the last few decades primarily driven by the largest (superstar) firms. The current paper examines the role of multi-product superstar firms in economic fluctuations and their interaction with smaller mono-product competitors. Market share reallocation between superstars and smaller firms via product scope adjustments generates heterogeneous markup dynamics. We find that the rising prevalence of superstar firms allows for greater divergence in markups across the firm types and increases the parameter space for macroeconomic instability. The endogenous amplification mechanism of product creation within superstars improves the fit of the estimated model and animal spirits play a significant role in driving U.S. business cycles.
