The importance of reallocation for productivity growth: Evidence from European and US banking

Arbeitspapier

To what extent has input reallocation contributed to aggregate productivity growth in the banking sectors of Europe and the United States? Interestingly, under-performing banks capture market share, while more productive banks lose market share, in particular in the US. The pattern of reallocation is markedly different between the geographical regions: European productivity has grown by reallocating inputs through the first half of the sample period, at the same time when reallocation diminished growth in the US. The long-run positive effects of creative destruction are especially apparent in the US, where reallocation is an important driver of increases in productivity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 296

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
• Subject: reallocation ; productivity growth ; efficiency ; banking

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bos, Jaap W. B. ; van Santen, Peter C.
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129708
• Last update: 10.03.2025, 11:44 AM CET