OxTalks is Changing
OxTalks will soon be transitioning to Oxford Events (full details are available on the Staff Gateway). A two-week publishing freeze is expected in early Hilary to allow all events to be migrated to the new platform. During this period, you will not be able to submit or edit events on OxTalks. The exact freeze dates will be confirmed as soon as possible.
If you have any questions, please contact halo@digital.ox.ac.uk
Idea Rents and Firm Growth
Which firms drive aggregate productivity growth? A strong form of Gibrat’s Law says that firm growth rates are iid, so that their expected contribution is proportional to their sales share. In contrast, we document that firms with high price-earnings ratios tend to see increases in their subsequent earnings relative to sales, which we interpret as rents from ideas. We construct an endogenous growth model with shocks to firm innovation step-sizes and R&D efficiency and calibrate it to match patterns in the data. The model implies that growth would be much lower, even with the same innovative effort, if firms had the same step sizes. The model can be used to infer expected growth contributions of individual firms (such as members of the Magnificent Seven) and individual sectors (such as AI firms). We find that the share of growth coming from the smallest listed firms substantially exceeds their 10\% sales share, whereas the largest firms account for less than their 10% sales share.
Date:
3 March 2026, 13:15
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A
Speaker:
Timo Boppart (University of Zurich)
Organising department:
Department of Economics
Part of:
Macroeconomics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Edward Valenzano
