TY  - JOUR
AU  - Aghion, Philippe
AU  - Bergeaud, Antonin
AU  - Boppart, Timo
AU  - Klenow, Peter J
AU  - Li, Huiyu
TI  - Missing Growth from Creative Destruction
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 24023
PY  - 2017
Y2  - November 2017
DO  - 10.3386/w24023
UR  - http://www.nber.org/papers/w24023
L1  - http://www.nber.org/papers/w24023.pdf
N1  - Author contact info:
Philippe Aghion
College de France
3 Rue D'Ulm
75005 Paris
FRANCE
E-Mail: p.aghion@lse.ac.uk

Antonin Bergeaud
Banque de France 
31 rue croix des petits champs 
Paris, France
E-Mail: antonin.bergeaud@gmail.com

Timo Boppart
Institute for International Economic Studies
Stockholm University
SE-106 91 Stockholm
Sweden
Tel: +46 (0)8 16 35 52
E-Mail: timo.boppart@iies.su.se

Peter J. Klenow
Department of Economics
579 Jane Stanford Way
Stanford University
Stanford, CA  94305-6072
Tel: 650/725-8169
Fax: NA
E-Mail: Klenow@Stanford.edu

Huiyu Li
101 Market Street, MS 1130
Federal Reserve Bank of San Francisco
San Francisco, CA 94105
United States
Tel: 6504851742
E-Mail: tohuiyu@gmail.com
AB  - Statistical agencies typically impute inflation for disappearing products based on surviving products, which may result in overstated inflation and understated growth. Using U.S. Census data, we apply two ways of assessing the magnitude of “missing growth” for private nonfarm businesses from 1983–2013. The first approach exploits information on the market share of surviving plants. The second approach applies indirect inference to firm-level data. We find: (i) missing growth from imputation is substantial — at least 0.6 percentage points per year; and (ii) most of the missing growth is due to creative destruction (as opposed to new varieties).
ER  -