We develop a new rationale for IPO waves based on product market considerations. Two firms, with differing productivity levels, compete in an industry with a significant probability of a positive productivity shock. Going public, though costly, not only allows a firm to raise external capital...

By exploiting establishment-level data for U.S. manufacturing, this paper sheds new light on the source of the changes in the structure of production, wages, and employment that have occurred over the last several decades. Based on recent theoretical work by Caselli (1999) and Kremer and Maskin...

We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions yield agglomeration clusters...

There is substantial within-industry variation, even within industries that use and produce homogeneous inputs and outputs, in the prices that plants pay for their material inputs. I explore, using plant-level data from the U.S. Census Bureau, the consequences and sources of this variation in...

Union membership displayed an inverted U-shaped pattern over the 20th century, while the distribution of income sketched a U. A model of unions is developed to analyze these phenomena. There is a distribution of firms in the economy. Firms hire capital, plus skilled and unskilled labor....

This paper develops two algorithms. Algorithm I computes the exact, Gaussian, log-likelihood function, its exact, gradient vector, and an asymptotic approximation of its Hessian matrix, for discrete-time, linear, dynamic models in state-space form. Algorithm 2, derived from algorithm I, computes...

This paper focuses on the impact of unionization on involuntary job loss using establishment data from the 1997 National Employer Survey (NES-II) and merging those data with contextual data at the industry level as well as with local labor market data. The estimated logit models included...