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Learning from Prices : Public Communication and Welfare

Amador, Manuel - 2008

We study the effect of releasing public information about productivity or monetary shocks when agents learn from nominal prices. While public releases have the benefit of providing new information, they can have the cost of reducing the informational efficiency of the price system. We show that,...

Persistent link: https://www.econbiz.de/10012770589

Market Penetration Costs and the New Consumers Margin in International Trade

Arkolakis, Costas - 2008

I develop a new theory of marketing costs and introduce it into a model of trade with product differentiation and firm … an increasing marginal cost to access additional consumers. This market penetration cost introduces an extensive margin … of new consumers in firms' sales. I calibrate the key parameters of the model to match data on French firms from Eaton …

Persistent link: https://www.econbiz.de/10012770681

Monopoly and the Incentive to Innovate When Adoption Involves Switchover Disruptions

Holmes, Thomas J. - 2015

When considering the incentive of a monopolist to adopt an innovation, the textbook model assumes that it can instantaneously and seamlessly introduce the new technology. In fact, firms often face major problems in integrating new technologies. In some cases, firms have to (temporarily) produce...

Persistent link: https://www.econbiz.de/10012750248

Dancing with the Stars : Innovation Through Interactions

Akcigit, Ufuk - 2018

An inventor's own knowledge is a key input in the innovation process. This knowledge can be built by interacting with and learning from others. This paper uses a new large-scale panel dataset on European inventors matched to their employers and patents. We document key empirical facts on...

Persistent link: https://www.econbiz.de/10012922975

A Short Note on Aggregating Productivity

Baqaee, David - 2019

This paper discusses two simple decompositions for aggregate productivity analysis in the presence of distortions and in general equilibrium. The first is a generalization of Baqaee and Farhi (2017) and the second is due to Petrin and Levinsohn (2012). In the process, we propose a new...

Persistent link: https://www.econbiz.de/10012889959

Measuring Productivity : Lessons from Tailored Surveys and Productivity Benchmarking

Atkin, David - 2019

We use tailored surveys and benchmarking in the flat-weave rug industry to better understand the shortcomings of standard productivity measures. TFPQ performs poorly because of variation in product specifications across firms. Controlling for specifications aligns TFPQ with lab benchmarks. We...

Persistent link: https://www.econbiz.de/10012894427

International Spillovers and ‘Ex-Ante’ Efficient Bailouts

Azzimonti, Marina - 2018

We study how cross-country macroeconomic spillovers caused by sovereign default affect equilibrium bailouts. Because of portfolio diversification, the default of one country causes a macroeconomic contraction also in other countries. This generates a self-interest for these other countries to...

Persistent link: https://www.econbiz.de/10012911465

The Real Exchange Rate, Innovation and Productivity : Heterogeneity, Asymmetries and Hysteresis

Alfaro, Laura - 2018

We evaluate manufacturing firms' responses to changes in the real exchange rate (RER) using detailed firm-level data for a large set of countries for the period 2001-2010. We uncover the following stylized facts about regional variation of manufacturing firms' integration into global value...

Persistent link: https://www.econbiz.de/10012918619

Peer Effects in Product Adoption

Bailey, Michael - 2019

We study the nature of peer effects in the market for new cell phones. Our analysis builds on de-identified data from Facebook that combine information on social networks with information on users' cell phone models. To identify peer effects, we use variation in friends' new phone acquisitions...

Persistent link: https://www.econbiz.de/10012869805

Misallocation, Establishment Size, and Productivity

Bento, Pedro - 2016

We consider a tractable model of heterogeneous production units that features endogenous entry and productivity investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the standard factor misallocation framework, policy...

Persistent link: https://www.econbiz.de/10012979762