Erzo G.J. Luttmer
- "Technology Diffusion and Growth,"
Journal of Economic Theory, 2012, Vol. 147, 602-622.
- imperfectly elastic entry is key to robustly ensure existence of a balanced growth path with a stationary firm size distribution
- long-run growth emerges even though entrants can only imitate relatively unproductive incumbents
- this imitation mechanism produces a unique stationary distribution
- "On the Mechanics of Firm Growth,"
The Review of Economic Studies, 2011, Vol. 78, No. 3, 1042-1068; see also MPLS Fed Region.
- firms grow by accumulating organization capital (e.g.
finding new customers)
- persistent heterogeneity in mean firm growth rates is needed to account for the relatively young age of very large firms
- small quality differences can lead to large size differences, over time
- "Models of Growth and Firm Heterogeneity,"
Annual Reviews of Economics, 2010, Vol. 2, 547-576.
- a survey that compares and contrasts models of firm size based on productivity growth and capital accumulation
- "Selection, Growth, and the Size Distribution of Firms,"
Quarterly Journal of Economics, 2007, Vol. 122, No. 3, 1103-1144.
- firm size differences reflect productivity and market size (consumer preferences)
- long-run growth driven by the ability of entrants to (imperfectly) imitate randomly sampled incumbents
- the model has both productivity improvements and gains from variety (but no scale effects)
- only one of the continuum of stationary distributions is accessible from an initial distribution with bounded support
- "Efficiency and Equilibrium when Preferences are Time-Inconsistent," with Thomas
Mariotti, Journal of Economic Theory, 2007, Vol. 132, No. 1, 493-506.
- "Competitive Equilibrium When Preferences Change over Time," with Thomas Mariotti,
Economic Theory, 2006, Vol. 27, No. 3, pp. 679-690.
- "The Existence of Subgame-Perfect Equilibrium in Continuous Games with
Almost Perfect Information: A Comment," with Thomas Mariotti, Econometrica, 2003, Vol. 71, No. 6, pp. 1909-1911.
- "Subjective Discounting in an Exchange Economy," with Thomas Mariotti, Journal
of Political Economy, 2003, Vol. 111, No. 5, pp. 959-989.
- "What Level of Fixed Costs Can Reconcile Consumption
and Stock Returns?," Journal of Political Economy,
1999, Vol. 107, No. 5, pp. 969-997.
- "Short-Term Interest Rates as Subordinated
Diffusions," with Timothy G. Conley, Lars Peter
Hansen and Jose A. Scheinkman, The Review of Financial
Studies, 1997, Vol. 10, No. 3, pp. 525-577.
- "Asset Pricing in Economies with Frictions," Econometrica,
1996, Vol. 64, No. 6, pp. 1439-1467.
- "Econometric Evaluation of Asset Pricing
Models," with Lars Peter Hansen and John Heaton, The
Review of Financial Studies, 1995, Vol. 8, No. 2, pp.
recent working papers
some working paper versions of published papers
Models of Growth and Firm Heterogeneity (April 2010)
Technology Diffusion and Growth (March 2010)
On the Mechanics of Firm Growth (February 2008), and a new version (March 2010)
New Goods and the Size Distribution of Firms (January 2007)
Consumer Search and Firm Growth (October 2006)
more links to published and unpublished papers
Asset Pricing with Market Frictions
Bounds Estimation and Moment Inequalities
Estimation of Markov Diffusions