Can Firm Subsidies Spread Growth?
(with Elodie Andrieu)
How
do firms diffuse resources along the value chain and how large
are such spillovers? We estimate the effects of France’s
R\&D subsidies during a period of substantially increased
funding, using increased access from consultancy certification
as an instrument. While most studies focus on manufacturing,
over half of the treated firms are in services. Subsidies
increase local industry technical employment with an elasticity
of .12 and firms with an elasticity of .05. Subsidies also
increase local upstream employment with an elasticity of .05 but
downstream employment asymmetrically, twice as large as upstream
but with almost zero effect on technical employment. This
suggests directed innovation spillovers along the value chain.
(with Luca
Macedoni and Vlad
Tyazhelnikov)
Which products are efficiently produced
together and which firms supply which products? Modeling
multi-product firms under variable markups, we estimate firms'
absolute advantages for produced products and develop an algorithm
to predict them for unproduced products. Better advantages imply
increased product adoption and explain which firms supply products
when export demand induces domestic adoption. Predicted advantages
and markups imply measures of Revenue and Competition Potential
which explain firm sales and scope growth. If all firms produced
all potential products, consumer welfare could increase by 16-30%
under constant markups, rising to 46-86% under variable markups.
The
Comparative Advantage of Firms
(with Johannes Boehm, Swati
Dhingra)
J of
Political Economy (Lead Article)
Monopolistic
Competition
and Optimum Product Diversity Under Firm Heterogeneity
Awarded the Chair Jacquemin Prize J of Political
Economy
(with Swati Dhingra)
Learning About the Prospects for Mobility:
Economic and
Political Dynamics Following Fundamental Policy Reform
(with Michael
Carter)
J of
Public Economics
Firm Productivity Differences from Factor Markets
(with Wenya
Cheng)
J
of Industrial Economics
Efficiency
in Large Markets with Firm Heterogeniety
(with Swati
Dhingra)
Research
in Economics
Product
Diversification in Indian Manufacturing
(with Johannes
Boehm, Swati Dhingra) in New Developments
in Global Sourcing
"Resting" Projects
Benford’s Law, Families of Distributions, and a Test Basis
CEP Discussion Paper No 1291
The Political Economy of Inclusive Growth
(with Michael
Carter)
Is
Skill
Dispersion a Source of Productivity and Exporting in Developing
Countries?