WZB Distinguished Lecture in Social Sciences by Philippe Aghion
Introduction: Helmut Bester
Ever since the financial crisis, the threat of long-lasting (“secular”) economic stagnation has been haunting Western economies. Philippe Aghion looks at this enigma through the lens of the Schumpeterian growth paradigm. It claims that economic growth is generated by entrepreneurial innovations which replace old technologies. Aghion argues that productivity growth due to this creative destruction is mismeasured by statistical offices. He links the recent decline in productivity growth to the emergence of so-called super-star firms that have high profits and a low share of labor in firm value-added and sales.