Showing results 1 - 10 of 43
June 25, 2020, Paper, "The COVID-19 pandemic has shed light on the structural dichotomy between the models of capitalism operating in Europe and the US; the former offers better protection for its citizens while the latter shows greater economic dynamism. This column argues that for all the harm COVID-19 has caused, the crisis has also provided an opening to rethink the versions of capitalism practised on both sides of the Atlantic. Some degree…
| Marc Melitz
The Heterogeneous Impact of Market Size on Innovation: Evidence from French Firm-Level Exports. Philippe Aghion, Marc Melitz, October 2019, Paper, "We analyze how demand conditions faced by a firm impacts its innovation decisions. To disentangle the direction of causality between innovation and demand conditions, we construct a firm-level export demand shock which responds to aggregate conditions in a firm’s export destinations but is exogenous…
Monetary Policy, Product Market Competition, and Growth. Philippe Aghion, November 13, 2018, Paper, "In this paper we argue that monetary easing fosters growth more in more credit-constrained environ ments, and the more so the higher the degree of product market competition. Indeed when competition is low, large rents allow firms to stay on the market and reinvest optimally, no matter how funding conditions change with aggregate conditions. To…
Missing Growth from Creative Destruction. Philippe Aghion, November 2017, Paper, "Statistical agencies typically impute inflation for disappearing products based on surviving products, which may result in overstated inflation and understated growth. Using U.S. Census data, we apply two ways of assessing the magnitude of “missing growth” for private nonfarm businesses from 1983–2013. The first approach exploits information on the markets hare of…
Entrepreneurship and growth: lessons from an intellectual journey. Philippe Aghion, January 2017, Paper, "This lecture is the story of an intellectual journey, that of elaborating a new—Schumpeterian—theory of economic growth. A theory where (i) growth is generated by innovative entrepreneurs; (ii) entrepreneurial investments respond to incentives that are themselves shaped by economic policies and institutions; (iii) new innovations replace old…
Competitiveness and Growth Policy Design. Philippe Aghion, March 22, 2016, Book Chapter. "After decades during which governments in developed countries would privilege domestic demand as a main driver of economic growth, the advent of globalisation has forced governments to increasingly turn their attention to the competitiveness of the domestic economy, i.e. the extent to which a country can export its production abroad and thereby 'exchange…
What is the link between innovation and social mobility? Philippe Aghion, July 30, 2015, Opinion. "Over the past decades, we have seen an accelerated increase in top income inequality worldwide, particularly in developed countries (Goldin and Katz 2008, Deaton 2013, Piketty 2013). In recent research (Aghion et al. 2015), we argue that in developed countries, starting with the US, innovation is an unavoidable part of the story. Thus, if we look…
Innovation, Income Inequality, and Social Mobility. Philippe Aghion, July 28, 2015. Paper. "In recent decades, there has been an accelerated increase in top income inequality, particularly in developed countries. This column argues that innovation partly accounts for the surge in top income inequality and fosters social mobility. In particular, the positive effect of innovation on social mobility is due to new innovators. Over the past decades,…
Innovation and Top Income Inequality. Philippe Aghion, June 2015, Paper. "In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is…
Lessons from Schumpeterian Growth Theory. Philippe Aghion, May 2015, Paper. "By operationalizing the notion of creative destruction, Schumpeterian growth theory generates distinctive predictions on important microeconomic aspects of the growth process (competition, firm dynamics, firm size distribution, cross-firm and cross-sector reallocation) which can be confronted using rich micro data. In this process the theory helps reconcile growth with…