An OLG Model of Common Ownership: Effects on Consumption and Investments

Research output: Contribution to journalArticleScientificpeer-review

5 Citations (Scopus)


We analyze how an increase in the degree of common ownership of firms in the same market affects consumption and investment. Such an increase is shown to reduce real investment and therefore intertemporal consumption. Overall, institutional investors’ common ownership of firms competing in the same market serves as a device for weakening market competition. The resulting increase in the price of acquiring shares with institutional investors then crowds out savings directed to real investments.
Original languageEnglish
Peer-reviewed scientific journalJournal of Macroeconomics
Publication statusPublished - 23.08.2019
MoE publication typeA1 Journal article - refereed


  • 511 Economics
  • Common ownership
  • institutional investors
  • real versus financial investments
  • market power
  • savings and investments
  • investment crowding-out
  • overlapping generations

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Competition economics and service strategy - Quantitative consumer behaviour and competition economics


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