Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory

In this paper, we review the literature on declining business dynamism and its implications in United States propose a unifying theory to analyze symptoms potential causes of decline. We first highlight 10 pronounced stylized facts related documented discuss some existing attempts explain them. then describe theoretical framework endogenous markups, innovation, competition that can potentially speak all these jointly. next explore predictions framework, which are shaped by two interacting forces: composition effect determines market concentration an incentive how firms respond given economy. The results decline knowledge diffusion between frontier laggard could be significant driver empirical trends observed data. This study emphasizes growth for analysis factors behind need further investigation direction. (JEL D33, E25, J24, L13, O33, O34)