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Multi-product firms and product switching

Author: Andrew B Bernard; Stephen Redding; Peter K Schott; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2006.
Series: Working paper series (National Bureau of Economic Research), no. 12293.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
"This paper examines the frequency, pervasiveness and determinants of product switching among U.S. manufacturing firms. We find that two-thirds of firms alter their mix of five-digit SIC products every five years, that one-third of the increase in real U.S. manufacturing shipments between 1972 and 1997 is due to the net adding and dropping of products by survivors, and that firms are more likely to drop products  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Andrew B Bernard; Stephen Redding; Peter K Schott; National Bureau of Economic Research.
OCLC Number: 70080852
Description: 1 online resource (1 v.)
Series Title: Working paper series (National Bureau of Economic Research), no. 12293.
Responsibility: Andrew B. Bernard, Stephen J. Redding, Peter K. Schott.

Abstract:

"This paper examines the frequency, pervasiveness and determinants of product switching among U.S. manufacturing firms. We find that two-thirds of firms alter their mix of five-digit SIC products every five years, that one-third of the increase in real U.S. manufacturing shipments between 1972 and 1997 is due to the net adding and dropping of products by survivors, and that firms are more likely to drop products which are younger and have smaller production volumes relative to other firms producing the same product. The product-switching behavior we observe is consistent with an extended model of industry dynamics emphasizing firm heterogeneity and self-selection into individual product markets. Our findings suggest that product switching contributes towards a reallocation of economic activity within firms towards more productive uses"--National Bureau of Economic Research web site.

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