We derive an estimating equation to estimate markups using the insight of Hall (1986) and the control function approach of Olley and Pakes (1996). We rely on our method to explore the relationship between markups and export behavior using plant-level data. We find significantly higher markups...

We develop a simple model of the effects of reputation on wine prices. An increasing fraction of consumers who are “naïve” (less well informed about wine quality) results in a stronger sensitivity of wine prices to ratings of quality. We then use data on prices and Robert Parker’s ratings...

In this paper, we use a rich dataset disaggregating imports and exports decisions by product and origin/destination of all Danish companies for the period 1993-2003 to provide key elements in characterizing Danish firms in international trade. Most evidence to date emanates from the U.S. or...

In this paper, we use a detailed dataset containing information about all international trade transactions of the population of Danish firms over more than a decade to analyze the relationship between export and import decisions and employment growth. We further distinguish between imports of...

This paper empirically investigates the relation between vertical integration and video game performance in the U.S. video game industry. For this purpose, we use a widely used data set from NPD on video game montly sales from October 2000 to October 2007. We complement these data with handly...

In this paper, we test key micro-level theoretical predictions ofMelitz and Ottaviano (MO) (2008), a model of international trade with heterogenous firms and endogenous mark-ups. At the firm-level, the MO model predicts that: 1) firm markups are negatively related to domestic market size; 2)...

In this paper, we look at the evolution of firms’ wage structures using a linked employeremployee dataset, which has longitudinal information for firms and covers a large fraction of the Czech labor market during the period 1998-2006. We first look at the evolution of individual wage...

In this paper, we test implications from various theories of hierarchies in organizations, in particular the assignment model (Rosen, 1982), the incentives model (Rosen, 1986), the supervision model (Qian, 1994) and the knowledge- <p> based hierarchy model (Garicano, 2000; Garicano and Rossi-Hansberg,...</p>

Existing tests of tournament theory have recently been criticized <p> for their failure to distinguish tournaments from other theories that <p> have similar effects like standards and marginal productivity theory <p> (Gibbs, 1994, 1996; Prendergast, 1999). In this paper, we propose a <p> series of empirical...</p></p></p></p>

This paper analyzes the effect of job creation and job destruction on the voting patterns of individuals in Poland during the 1997 and 2001 parliamentary elections. First, we link the votes <p> for the left wing party to the unemployment rate and the job creation and destruction rates in the...</p>