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Marchés et la relation non‐monotone entre la productivité et la taille de l’établissement .
Author(s) -
Bakhtiari Sasan
Publication year - 2012
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2011.01698.x
Subject(s) - monopolistic competition , economics , productivity , market size , competition (biology) , monotonic function , relation (database) , econometrics , microeconomics , monopoly , macroeconomics , mathematics , commerce , ecology , mathematical analysis , database , biology , computer science
A model of monopolistic competition is presented in which the relation between the productivity and input size of producers is non‐monotonic and bell‐shaped. The model predicts that markets matter and the average size of the producers is directly scaled by the size of the market. An indirect effect increases the cutoff productivity, making the bell narrower in larger markets or when the transportation cost falls. Empirical evidence from the concrete industry and a few other 4‐digit industries supports the model’s predictions. The bell‐shaped relation has especially important implications on how size distributions are formed across localized versus globalized market industries.