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Big Business Stability and Social Welfare

In: Financial Sector Development in the Pacific Rim

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  • Kathy Fogel
  • Randall Morck
  • Bernard Yeung

Abstract

Many countries appear to have excessively stable big business sectors, in that higher rates of big business turnover have been correlated with faster economy growth. Public policies that stabilize big business sectors are sometimes justified as supportive of social objectives. We find no consistent link between big business stability and public goods provision, egalitarianism, or labor empowerment. While absence of evidence is not evidence of absence, these findings suggest that other explanations, such as special interest politics or behavioral biases favoring the status quo also be considered.
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Suggested Citation

  • Kathy Fogel & Randall Morck & Bernard Yeung, 2009. "Big Business Stability and Social Welfare," NBER Chapters, in: Financial Sector Development in the Pacific Rim, pages 349-370, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:0426
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • G3 - Financial Economics - - Corporate Finance and Governance
    • I0 - Health, Education, and Welfare - - General
    • J0 - Labor and Demographic Economics - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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