Big Data and Firm Dynamics

Maryam Farboodi; Roxana Mihet; Thomas Philippon; Laura Veldkamp

doi:10.3386/w25515

Big Data and Firm Dynamics

Maryam Farboodi, Roxana Mihet, Thomas Philippon & Laura Veldkamp

Working Paper 25515

DOI 10.3386/w25515

Issue Date January 2019

We study a model where firms accumulate data as a valuable intangible asset. Data accumulation affects firms’ dynamics. It increases the skewness of the firm size distribution as large firms generate more data and invest more in active experimentation. On the other hand, small data- savvy firms can overtake more traditional incumbents, provided they can finance their initial money- losing growth. Our model can be used to estimate the market and social value of data.

The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

Laura Veldkamp
I have visited or lectured at the following institutions, where I have received an honorarium and/or have been paid travel expenses:

EIEF, Rome, Italy, research visitor.

Federal Reserve Bank of New York, US. As consultant to the Research Department.

Federal Reserve Bank of Minneapolis, US. As consultant to the Research Department.

Goldman Sachs, as a GMI fellow.

Standard & Poors, one-time honorarium.

University of California at Los Angeles, as a guest Ph.D. lecturer

I also receive a salary from Elsevier as an editor of the Journal of Economic Theory.
MARC RIS BibTeΧ

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