Book contents
- Frontmatter
- Contents
- Figures
- Tables
- About the Authors
- Preface
- Acknowledgements
- 1 Introduction
- 2 Basic Concepts
- 3 Productivity Estimation
- 4 Measuring Market Efficiency
- 5 Sources of Data
- 6 Productivity and the Financial Environment
- 7 Productivity and the Labour Market
- 8 Productivity in a Borderless World
- 9 Productivity and Competitive Pressure
- 10 Conclusions
- Bibliography
- Index
9 - Productivity and Competitive Pressure
Published online by Cambridge University Press: 14 April 2022
- Frontmatter
- Contents
- Figures
- Tables
- About the Authors
- Preface
- Acknowledgements
- 1 Introduction
- 2 Basic Concepts
- 3 Productivity Estimation
- 4 Measuring Market Efficiency
- 5 Sources of Data
- 6 Productivity and the Financial Environment
- 7 Productivity and the Labour Market
- 8 Productivity in a Borderless World
- 9 Productivity and Competitive Pressure
- 10 Conclusions
- Bibliography
- Index
Summary
For those countries or industries in which a rise in (measured) market power actually translates into an effective restriction of competition and increasing profits, as it seems to be the case for the US, a significant slowdown of investment, business dynamism, fall in labour share and wages has been observed. The latter in turn has several policy implications, from obvious considerations of reduced consumers' welfare, to low productivity growth, to severe implications for the transmission mechanism of monetary policy. However, one has to question the nature of such an increase in market power. If the latter stems from “good” market forces in which industries experience a reallocation of economic activities towards the largest and most productive firms, as some research shows, a debate opens up on the necessary reform of competition policies.
- Type
- Chapter
- Information
- The Economics of Firm ProductivityConcepts, Tools and Evidence, pp. 169 - 198Publisher: Cambridge University PressPrint publication year: 2022