Measured productivity with endogenous markups and economic profits

I study the effect of dynamic firm entry, scale economies and oligopolistic competition on measured productivity. These features cause endogenous, procyclical, fluctuations in productivity (Solow residual). analytically decompose into a pure technology component an endogenous component. show that arises because entry firms to vary their optimal production which turn interacts with returns generating effects. estimate series shows it is less volatile more persistent than standard Solow residual. Lastly, simulate model process mechanisms generate output amplification relative benchmark monopolistic competition, static model.