The US economy has become more stable. At the same time, US firms have become more volatile. I present the evidence and I propose a common explanation, based on the idea that goods markets have become more competitive. Competition between firms magnifies the effects of idiosyncratic productivity...

We study the consequences of earnings management for the allocation of resourcesamong firms, and we argue that fraudulent accounting has important economic consequences.We first build a model where the costs of earnings management are endogenous,and we show that, in equilibrium, bad managers...

The share of finance in U.S. GDP has been multiplied by more than three over the postwar period. I argue, using evidence and theory, that corporate finance is a key factor behind this evolution. Inside the finance industry, credit intermediation and corporate finance are more important than...

We measure the evolution of dominant firms in the U.S. economy since 1960, and globally since 1990. Contrary to common wisdom, dominant firms have not become larger, have not become more productive, and their contribution to aggregate productivity growth has fallen by more than one third since 2000

We study an economy in which consumers and merchants (sellers) interact on a two-sided platform. Consumers can share data about their tastes for different varieties of a single good with the platform which in turn sells this data to merchants. Data sharing increases gains from trade by improving...

This supplement comprises an appendix on the security exchange industry, proofs of propositions and lemmas in the main paper and model extensions.The paper "Competing on Speed" to which these Appendices apply is available at the following URL: "http://ssrn.com/abstract=1967156"...

The authors analyze the expansion of Big Data and artificial intelligence technologies from the perspective of economic theory. The authors argue that these technologies can be viewed from three perspectives: (1) as an intangible asset; (2) as a search and matching technology; and (3) as a...

We study an economy in which consumers and merchants (sellers) interact on a two-sided platform. Consumers can share data about their tastes for different varieties of a single good with the platform which in turn sells this data to merchants. Data sharing increases gains from trade by improving...

Starting in March 2023, depositor runs quickly led to the failures of Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. In the wake of higher interest rates, uninsured depositors of these banks had lost confidence in their business model of taking in deposits and investing the...

The US economy has become more stable. At the same time, US firms have become more volatile. I present the evidence and I propose a common explanation, based on the idea that goods markets have become more competitive. Competition between firms magnifies the effects of idiosyncratic productivity...