, Columnist
How Superstar Firms Win Big From Low Interest Rates
A new paper from the National Bureau of Economic Research shows that low borrowing costs disproportionately aid the top 5% of companies within each industry.
Low rates, big payoff.
Photographer: Paul Yeung/Bloomberg
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Low real interest rates and the rise of so-called superstar firms are two of the most prominent features of the macroeconomy over the past decade. A new analysis suggests the two are intricately related, highlighting the interaction between monetary policy and the industrial organization of companies.
In 2015, Jason Furman and I highlighted a relatively new development: a dramatic increase in the dispersion of capital returns across companies, with industry leaders seemingly pulling away from others within the same sector.