Results

Journal article

Review of International Economics:

Value co-creation and value capture in digital innovation ecosystems: a multiple case study in the agrifood sector

We use a large episode of trade liberalization in Spain to test a rich set of channels linking trade and markups. The effect of reductions in import tariffs on firm-level and aggregate markups is pro-competitive, but the...Read more...

Journal article

Journal of the European Economic Association:

Innovation union: costs and benefits of innovation policy coordination

What is the scope for international cooperation in innovation policy in economies closely integrated via trade? We address this question by building a two-region innovation-driven growth model with endogenous technology ...Read more...

Journal article

Journal of Political Economy: Macroeconomics:

Innovation and trade policy in a globalized world

What is the role of innovation policy in an open economy and how does it interact with foreign competition? We address this question employing a new innovation-driven growth model with two large open economies at differe...Read more...

CentrePiece article

The price of power: why rising markups hurt innovation and widen inequality

Over the past four decades, the United States has seen rising market power, slowing productivity growth and deepening wealth inequality. Giammario Impullitti and Pontus Rendahl explore how declining competition may be th...Read more...

Blog

Vox EU:

The price of power: Why rising markups hurt innovation and widen inequality

Over the past four decades, the US has seen rising market power, slowing productivity growth, and deepening wealth inequality. This column explores how declining competition may be the common culprit. Weak competition le...Read more...

CEP discussion paper

Market power, growth and wealth inequality

In recent decades, the United States has experienced a notable rise in markups, a slowdown in productivity growth, and an increase in wealth inequality. We present a framework that unifies these trends into a common driv...Read more...

CEP discussion paper

Globalization and market power

Economic theory suggests that the markup is a key measure of market power and that its relationship with trade is rich and complex. Trade liberalisation can reduce markups via a decline in the residual domestic demand bu...Read more...

Journal article

Economic Modelling:

Credit constraints, selection and productivity growth

This paper presents a tractable model of innovation and growth with firm heterogeneity and financial frictions. The model is used to uncover new mechanisms linking access to credit and productivity growth, highlighting t...Read more...

Journal article

Journal of International Economics:

Technology, market structure and the gains from trade

We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation. Our key finding is that a trade-induced increase in market concentration can be an important source of the gain...Read more...

Journal article

The Journal of Industrial Economics:

Demand-driven technical change and productivity growth: theory and evidence from the Energy Policy Act

We present novel evidence on the effect of market size on technology adoption and productivity. Our tests exploit a natural experiment in the U.S. corn industry where changes to national energy policy created exogenous i...Read more...

CEP discussion paper

Innovation union: costs and benefits of innovation policy coordination

We build a two-region endogenous growth model to analyse the gains from innovation policy cooperation in an economic union. The model is calibrated to two blocks of the EU: the old and new members. R&D subsidy coordinati...Read more...

Journal article

Journal of International Economics:

Globalization and state capitalism: assessing Vietnam's accession to the WTO

What do state-owned enterprises (SOEs) do? How do they respond to market incentives? Can we expect substantial efficiency gains from trade liberalization in economies with a strong presence of SOEs? Using a new dataset o...Read more...

CentrePiece article

When innovation policy trumped protectionism: the Reagan years

Giammario Impullitti and colleagues show that it was the Reagan administration's innovation policy - not a retreat from globalisation - that promoted US growth....Read more...

CEP discussion paper

Globalization and state capitalism: assessing Vietnam's accession to the WTO

What do state-owned enterprises (SOEs) do? How do they respond to market incentives? Can we expect substantial efficiency gains from trade liberalization in economies with a strong presence of SOEs? Using a new dataset o...Read more...

CEP discussion paper

Innovation and trade policy in a globalized world

How do import tariffs and R&D subsidies help domestic firms compete globally? How do these policies affect aggregate growth and economic welfare? To answer these questions we build a dynamic general equilibrium growth mo...Read more...

CEP discussion paper

Technology, market structure and the gains from trade

We study the gains from trade in a new model with oligopolistic competition, firm heterogeneity, and innovation. Lowering trade costs reduces markups on domestic sales but increases markups on export sales, as firms do n...Read more...

Journal article

Journal of the European Economic Association:

Firm dynamics and residual inequality in open economies

Wage inequality between similar workers has been on the rise in many rich countries. Recent empirical research suggests that heterogeneity in firm characteristics is crucial to understand wage dispersion. Lower trade cos...Read more...

Journal article

Journal of Political Economy Macroeconomics :

Innovation and trade policy in a globalized world

How do import tariffs and R&D subsidies help domestic firms compete globally? How do these policies affect aggregate growth and economic welfare? To answer these questions, we build a dynamic general equilibrium growth m...Read more...

Journal article

Economic Journal:

Trade, firm selection and innovation: the competition channel

We study the welfare gains from trade in an economy with heterogeneous firms, variable markups and endogenous growth. Variable markups arise from oligopolistic competition, and cost-reducing innovation is the engine of l...Read more...