pricing in which demand shocks play a central role. These shocks give rise to valuation risk that allows the model to account …, arises because these models load all uncertainty onto the supply side of the economy. We propose a simple theory of asset …

than its static analog. We then test the theory using monthly production targets of the Big Three U.S. auto manufacturers …

We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face … deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find … of capacity is high enough, holding current demand constant, prices in the boom will be generally lower than the prices …

"downstreamness" depends crucially on the elasticity of demand faced by the final-good producer. Our model readily accommodates … Trade database and estimates of U.S. import demand elasticities from Broda and Weinstein (2006), we find empirical evidence …

We quantify and explain the firm responses and worker impacts of foreign demand shocks to domestic production networks … estimates of firm responses suggest that Belgian firms pass on a large share of a foreign demand shock to their domestic … in foreign demand propagate through a small open economy and affect firms and workers. Our results suggest that the way …

and future demand is uncertain. Investment requires the full …