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We propose a theory of firm production that requires diverse inputs. We show that in a competitive labor market, firms … differ in their skill composition. Organizations with higher Total Factor Productivity (TFP) are larger and hire from a … productivity using our model shows that a CES production function generates unbiased estimates of TFP but biased estimates of …
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Do multinational firms wield more market power than their domestic counterparts? Using Hungarian firm-level data between 1993 and 2007, we find that markups are 19 percent higher for foreign-owned firms than for domestically owned firms. Moreover, markups for domestically owned firms are...
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