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Multi-Product Establishments and Product Dynamics

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  • Masashige Hamano
  • Keita Oikawa

Abstract

The current paper builds a general equilibrium model based on heterogeneous productivities of establishments and heterogeneous tastes at the product level. Establishments choose endogenously their product mix over the business cycle given different income elasticities across products in consumer preferences. We calibrate and estimate the model's shock processes with Japanese data and find that (de)regulation policy at entry, incumbent firms or establishments and each product level provide substantially different outcomes, thereby providing a caveat for policy debate.

Suggested Citation

  • Masashige Hamano & Keita Oikawa, 2022. "Multi-Product Establishments and Product Dynamics," Working Papers e168, Tokyo Center for Economic Research.
    • Handle: RePEc:tcr:wpaper:e168
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    References listed on IDEAS

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    6. Masashige Hamano & Francesco Zanetti, 2017. "Endogenous Turnover and Macroeconomic Dynamics," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 263-279, October.
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    9. Kozo Ueda & Kota Watanabe & Tsutomu Watanabe, 2019. "Product Turnover and the Cost-of-Living Index: Quality versus Fashion Effects," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 310-347, April.
    10. HAMANO Masashige & OKUBO Toshihiro, 2021. "In Search of Lost Time: Firm Vintage and Macroeconomic Dynamics," Discussion papers 21015, Research Institute of Economy, Trade and Industry (RIETI).
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    13. Robert DEKLE & KAWAKAMI Atsushi & KIYOTAKI Nobuhiro & MIYAGAWA Tsutomu, 2015. "Product Dynamics and Aggregate Shocks: Evidence from Japanese product and firm level data," Discussion papers 15137, Research Institute of Economy, Trade and Industry (RIETI).
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    Cited by:

    1. HAMANO Masashige & OKUBO Toshihiro, 2023. "Product Dynamics and Macroeconomic Shocks: Insights from a DSGE model and Japanese data," Discussion papers 23045, Research Institute of Economy, Trade and Industry (RIETI).
    2. Ako Viou Bahun-Wilson, 2022. "On the Role of Product Quality in Product Reallocation and Macroeconomic Dynamics," Cahiers de recherche 22-01, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

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