This paper examines how changes in product market concentration, specifically firm exit, affect prices. I develop a model where firms have variable markups to show that the remaining firms increase their markups and prices after their competitors’ exit. The model predictions are tested using...

Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper...

This study is an assessment of the different ways in which various shocks affect the industrial sectors of an economy. Specifically, we examine how production in various industrial sectors are affected by interest rates, as well as exchange rates, money aggregates, aggregated industrial...

We exploit firm-level data on patent grants and subsequent reactions of stocks to identify technological news shocks. Changes in stock market valuations due to announcements of individual patent grants represent expected future increases in the technology level, which we refer to as patent-based...

This paper evaluates the response of employment to exchange rate shocks at the industry level for G-7 countries. Using an empirical framework that places little structure on the data, we find that European industries, at least France and Germany, are much less influenced by exchange rate shocks...

We evaluate the duration of the China trade shock and its impact on a wide range of outcomes over the period 2000 to 2019. The shock plateaued in 2010, enabling analysis of its effects for nearly a decade past its culmination. Adverse impacts of import competition on manufacturing employment,...

Using U.S. data over the period 1960Q3 - 2019Q4 we estimate a structural factor-augmented vector autoregressive model and find that a one standard deviation shock to macroeconomic uncertainty generates declines in state-level employment growth that range from -0.02 to -0.12 percentage points at...

How does import competition from China affect engagement on ESG initiatives by US corporates? On the one hand, reduced profitability due to import competition and lagging ESG performance of Chinese exporters can disincentivize US firms to put more resources to ESG initiatives. On the other hand,...

The rapid rise of Chinese exports over the past few decades has raised concerns about manufacturing jobs and internal labor market outcomes in high-income countries. I analyze the effect of rising Chinese import competition on Finnish regional manufacturing employment between 1995 and 2007. The...

Based on firm level data in the French manufacturing sector, we find that firms adapt quickly, strongly and through multiple channels to energy shocks, even though electricity and gas bills represent a very small share of their total costs. Over the period 1996-2019, faced with an idiosyncratic...