Mergers as Reallocation

Jovanovic, Boyan; Rousseau, Peter L.

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Mergers as Reallocation

NBER Working Paper No. w9279

27 Pages Posted: 19 Oct 2002 Last revised: 10 Nov 2022

See all articles by Boyan Jovanovic

Boyan Jovanovic

New York University - Department of Economics

Peter L. Rousseau

Vanderbilt University - Department of Economics

Date Written: October 2002

Abstract

We argue that takeovers have played a major role in speeding up the diffusion of new technology. The role that they play is similar to that of entry and exit of firms. We focus on and compare two periods: 1890-1930 during which electricity and the internal combustion engine spread through the U.S. economy, and 1971-2001 . the Information Age.

Suggested Citation: Suggested Citation

Jovanovic, Boyan and Rousseau, Peter L., Mergers as Reallocation (October 2002). NBER Working Paper No. w9279, Available at SSRN: https://ssrn.com/abstract=341848