MARC Record from Library of Congress

LEADER: 01821nam a22002777a 4500
001 2007618514
003 DLC
005 20070622124428.0
007 cr |||||||||||
008 070622s2007 mnu sb f000 0 eng
010 $a 2007618514
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aLuttmer, Erzo Gerrit Jan,$d1964-
245 10 $aNew goods and the size distribution of firms$h[electronic resource] /$cErzo G.J. Luttmer.
260 $a[Minneapolis, MN] :$bFederal Reserve Bank of Minneapolis, Research Dept.,$c[2007]
490 0 $aWorking paper / Federal Reserve Bank of Minneapolis, Research Dept. ;$v649
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file (viewed on June 22, 2007).
500 $a"January 2007."
530 $aAlso available in print.
520 3 $aThis paper describes a simple model of aggregate and firm growth based on the introduction of new goods. An incumbent firm can combine labor with blueprints for goods it already produces to develop new blueprints. Every worker in the economy is also a potential entrepreneur who can design a new blueprint from scratch and set up a new firm. The implied firm size distribution closely matches the fat tail observed in the data when the marginal entrepreneur is far out in the tail of the entrepreneurial skill distribution. The model produces a variance of firm growth that declines with size. But the decline is more rapid than suggested by the evidence. The model also predicts a new-firm entry rate equal to only 2.5% per annum, instead of the observed rate of 10% in U.S. data.
504 $aIncludes bibliographical references.
710 2 $aFederal Reserve Bank of Minneapolis.$bResearch Dept.
856 40 $uhttp://minneapolisfed.org/research/wp/wp649.pdf