Very interesting piece! I did my disseration under Israel Kirzner (looking into the source of "entrepreneurial alertness:) and I believe he would be pleased with this approach. I think beyond the innovative approach to measuring reallocation, the real contribution is refusing to use aggregate data (Austrians always shun them), and instead drilling down to individual establishments level. Market process according to Kirzner doesn't affect everyone the same, and avrages conceal how it works.
Interestingly, the European Central Bank recently admitted that the US is ahead of Europe on both productivey and innovation. It attributes it to "higher churn" in US companies' employment, and digitalization.
A question arises as to the effect of higher market share on productivity. Once achieved via the Kirznerian market process, do these firms keep their productivity advantage? Or is one reason for higher dynamics in those sectors due to less productivity at the incumbents?
These are great papers on firm (and labor) entry/exit actions. The data set come from Business Dynamics at Kaufman Foundation in Kansas City detailing the entry exit of all firms in US since the 1970s.
"'islands,' which separate markets that don’t know " Whose? With?
Interesting comparison of (different) markets/ regimes. Time series could be even more-interesting, when and as available. I can't believe I've never seen the term "tatonnement" before. It seems SO BASIC.
Very interesting piece! I did my disseration under Israel Kirzner (looking into the source of "entrepreneurial alertness:) and I believe he would be pleased with this approach. I think beyond the innovative approach to measuring reallocation, the real contribution is refusing to use aggregate data (Austrians always shun them), and instead drilling down to individual establishments level. Market process according to Kirzner doesn't affect everyone the same, and avrages conceal how it works.
Interestingly, the European Central Bank recently admitted that the US is ahead of Europe on both productivey and innovation. It attributes it to "higher churn" in US companies' employment, and digitalization.
A question arises as to the effect of higher market share on productivity. Once achieved via the Kirznerian market process, do these firms keep their productivity advantage? Or is one reason for higher dynamics in those sectors due to less productivity at the incumbents?
These are great papers on firm (and labor) entry/exit actions. The data set come from Business Dynamics at Kaufman Foundation in Kansas City detailing the entry exit of all firms in US since the 1970s.
I didn't know this measure actually. Thanks!
"'islands,' which separate markets that don’t know " Whose? With?
Interesting comparison of (different) markets/ regimes. Time series could be even more-interesting, when and as available. I can't believe I've never seen the term "tatonnement" before. It seems SO BASIC.
With! Thanks