Results

CEP discussion paper

The comparative advantage of firms

Multiproduct firms dominate production, and their product turnover contributes substantially to aggregate growth. Theories propose that multiproduct firms grow by diversifying into products which need the same know-how o...Read more...

Journal article

Journal of Industrial Economics:

Firm Productivity Differences From Factor Markets

We model firm adaptation to local factor markets in which firms care about both the price and availability of inputs. The model is estimated by combining firm and population census data, and quantifies the role of factor...Read more...

CEP discussion paper

Product diversification in Indian manufacturing

The presence of global value chains challenges the neoclassical idea of the firm since it implies firms are not monolithic but are rather interdependent on the larger economic environment. Examining establishments, the s...Read more...

CEP discussion paper

Efficiency in large markets with firm heterogeneity

Abstract Empirical work has drawn attention to the high degree of productivity differences within industries, and its role in resource allocation. In a benchmark monopolistically competitive economy, productivity differe...Read more...

CEP discussion paper

Swimming upstream: input-output linkages and the direction of product adoption

Multiproduct firms dominate production, and their product turnover contributes substantially to aggregate growth. Firms continually adapt their product mix, but what determines which products firms expand into? Theories ...Read more...

CEP discussion paper

Benford's Law, Families of Distributions and a Test Basis

Benford's Law is used to test for data irregularities. While novel, there are two weaknesses in the current methodology. First, test values used in practice are too conservative and the test values of this paper are more...Read more...

CEP discussion paper

The Political Economy of Inclusive Rural Growth

Abstract Commentators on the `East Asian Miracle' of inclusive growth have often pointed toward shared rural growth policies. But why were these policies not chosen elsewhere? This paper models voters who invest in eithe...Read more...

CEP discussion paper

Productivity As If Space Mattered: An Application to Factor Markets Across China

Optimal production decisions depend on local market characteristics. This paper develops a model to explain firm labor demand and firm density across regions. Firms vary in their technology to combine imperfectly substit...Read more...

CEP discussion paper

The Impact of Integration on Productivity and Welfare Distortions Under Monopolistic Competition

A fundamental question in monopolistic competition theory is whether the market allocates resources efficiently. This paper generalizes the Spence-Dixit-Stiglitz framework to heterogeneous firms, addressing when the mark...Read more...

CEP discussion paper

Left, Right, Left: Income and Political Dynamics in Transition Economies

The political left turn in Latin America, which lagged its transition to liberalized market economies by a decade or more, challenges conventional economic explanations of voting behavior. While the implications of upwar...Read more...