A fundamental result in the theory of commodity taxation is that taxes increase consumer prices and reduce supply …

adverse consequences for aggregate labor productivity. Using high-quality administrative data from Germany, we document that … data predicts 10 percent lower aggregate labor productivity in East Germany. …

We investigate the effect of better access to foreign markets on innovation strategies of multi-product firms in … between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product … innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. We test …

Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … of total factor productivity (TFP) - and equivalently of real per capita income or welfare - as a smaller fraction of … market size and TFP. We argue that models with heterogeneous firms and selection help to reconcile theory and data. While …

We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity …