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Reallocation, firm turnover, and efficiency : selection on productivity or profitability?

Foster, Lucia (contributor); … - 2005

) productivity growth, as more productive businesses displace less productive ones. However, this research has been limited by the … productivity measures. If prices reflect idiosyncratic demand or market power shifts, high "productivity" businesses may not be … selection and productivity growth using data from industries where we observe producer-level quantities and prices separately …

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