Arbeitspapier
Churning and profitability in the U.S. corporate sector
This paper establishes that entry and exit regulate the top half of the profitability distribution in the post-1970 U.S. economy. We, first, document stability in the distribution of total profits earned on tangible, intangible, and financial capital. Whereas a narrower measure of returns on tangible capital, instead, suggests rising dispersion, it fails to capture post-1970 growth in intangible and financial assets. Second, we use quantile decompositions to show that churning - specifically, exit for cause - regulates median and top-end profitability. Thus, the process by which competition drives out unprofitable firms acts to stabilize profit rates in the U.S. economy.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2021-06
- Klassifikation
-
Wirtschaft
- Thema
-
Profit rates
competition
entry and exit dynamics
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Davis, Leila
Joao de Souza
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Massachusetts, Department of Economics
- (wo)
-
Amherst, MA
- (wann)
-
2021
- DOI
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doi:10.7275/21977170
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Davis, Leila
- Joao de Souza
- University of Massachusetts, Department of Economics
Entstanden
- 2021
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