Bernard, Andrew B., Redding, Stephen and Schott, Peter K.
(2010)
Multiple-product firms and product switching.
American economic review, 100
(1).
pp. 70-97.
ISSN 0002-8282
Abstract
This paper examines the frequency, pervasiveness, and determinants of product switching by US manufacturing firms. We find that one-half of firms alter their mix of five-digit SIC products every five years, that product switching is correlated with both firm- and firm-product attributes, and that product adding and dropping induce large changes in firm scope. The behavior we observe is consistent with a natural generalization of existing theories of industry dynamics that incorporates endogenous product selection within firms. Our findings suggest that product switching contributes to a reallocation of resources within firms toward their most efficient use
| Item Type: |
Article
|
| Official URL: |
http://www.aeaweb.org/aer/index.php |
| Additional Information: |
© 2010 AEA |
| Uncontrolled Keywords: |
ISI, manufacturing plants, market structure, dynamics, industry, reallocation, exit, selection, turnover, growth, output |
| Library of Congress subject classification: |
H Social Sciences > HD Industries. Land use. Labor |
| Journal of Economic Literature Classification System: |
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification and Scope, Age, Profit, and Sales
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm |
| Sets: |
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics |
| Rights: |
http://www.lse.ac.uk/library/rights/LSERO.htm |
| Identification Number: |
UT ISI:000276580100003 |
| URL: |
http://eprints.lse.ac.uk/27861/ |
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