Multi-Product Firms and Product Switching
48 Pages Posted: 16 Jun 2006 Last revised: 5 Aug 2022
There are 4 versions of this paper
Multi-Product Firms and Product Switching
Multi-Product Firms and Product Switching
Multi-Product Firms and Product Switching
Multi-Product Firms and Product Switching
Date Written: June 2006
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.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Multi-Product Firms and Product Switching
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Product Switching
By Stephen J. Redding, Andrew B. Bernard, ...
-
Multi-Product Firms and Product Switching
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogeneous Firms
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogeneous Firms
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogenous Firms
By Andrew B. Bernard, Stephen J. Redding, ...
-
By Andrew B. Bernard, J. Bradford Jensen, ...