Publications
Oligopoly and Oligopsony in International Trade. July, 2023
Accepted at Canadian Journal of Economics
with Vladimir Tyazhelnikov
[Replication Package]
Accepted at Canadian Journal of Economics
with Vladimir Tyazhelnikov
[Replication Package]
Pricing in Firm-to-Firm Trade. Evidence from a Danish Multinational.
Review of World Economics, 2023
with Elena Mattana
[Published Version] [Online Appendix]
Review of World Economics, 2023
with Elena Mattana
[Published Version] [Online Appendix]
Large Multiproduct Exporters Across Rich and Poor Countries: Theory and Evidence.
Journal of Development Economics, 2022; 156, 10283
[Published Version] [Online Appendix]
Journal of Development Economics, 2022; 156, 10283
[Published Version] [Online Appendix]
Asymmetric Information, Quality, and Regulations.
Review of International Economics, 2022; 30(4), 1180-1198
[Published Version]
Review of International Economics, 2022; 30(4), 1180-1198
[Published Version]
Flexibility and Productivity: Towards the Understanding of Firm Heterogeneity.
International Economic Review, 2022; 63: 1055-1108
with Mingzhi Xu
[Published Version] [Online Appendix]
International Economic Review, 2022; 63: 1055-1108
with Mingzhi Xu
[Published Version] [Online Appendix]
Quality Heterogeneity and Misallocation: The Welfare Benefits of Raising your Standards.
Journal of International Economics, 2022; 134, 103544
with Ariel Weinberger
[Published Version] [Replication Package] [The Planner's Allocation] [The CES case] [Other VES Preferences]
Journal of International Economics, 2022; 134, 103544
with Ariel Weinberger
[Published Version] [Replication Package] [The Planner's Allocation] [The CES case] [Other VES Preferences]
Monopsonistic Competition, Trade, and the Profit Share.
Scandinavian Journal of Economics, 2022; 124: 488-515
[Published Version] [Replication Package]
Scandinavian Journal of Economics, 2022; 124: 488-515
[Published Version] [Replication Package]
Has the Euro Shrunk the Band? Relative PPP Convergence in a Currency Union.
Scandinavian Journal of Economics, 2021; 123(2), 593–620
[Published Version] [Online Appendix]
Scandinavian Journal of Economics, 2021; 123(2), 593–620
[Published Version] [Online Appendix]
Working Papers
Multi-product Firms and Competition: Fight or Flight? September 2023
with Frederic Warzynski and Rui Zhang
We propose a new model of multi-product firms in international trade, where firms select their product categories based on the categories' attractiveness and level of competition. Using Danish manufacturing data, we present two novel stylized facts that demonstrate the importance of product-specific characteristics in understanding firms' product choices. More attractive product categories also feature tougher competition, leading to the emergence of two sorting patterns: one in which only the most productive firms produce the most attractive products and another in which all firms produce the most attractive products. Our model can generate both sorting patterns depending on the value of a key preference parameter. Quantifying our model we find that product-specific differences in attractiveness and competition explain a quarter of the variation in sales. Furthermore, we find that the most attractive products tend to be produced by all firms, while the least attractive products are made only by the most productive firms.
with Frederic Warzynski and Rui Zhang
We propose a new model of multi-product firms in international trade, where firms select their product categories based on the categories' attractiveness and level of competition. Using Danish manufacturing data, we present two novel stylized facts that demonstrate the importance of product-specific characteristics in understanding firms' product choices. More attractive product categories also feature tougher competition, leading to the emergence of two sorting patterns: one in which only the most productive firms produce the most attractive products and another in which all firms produce the most attractive products. Our model can generate both sorting patterns depending on the value of a key preference parameter. Quantifying our model we find that product-specific differences in attractiveness and competition explain a quarter of the variation in sales. Furthermore, we find that the most attractive products tend to be produced by all firms, while the least attractive products are made only by the most productive firms.
International Spillovers of Quality Regulations. June 2023 (under review)
Previously circulated as "Quality Misallocation, Trade, and Regulations". CESifo Working Paper No. 9041
with Ariel Weinberger
[Video (older version)] [CESifo]
This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a fixed cost that any firm selling to an economy must pay, consistent with stylized facts that we present. We demonstrate that in the presence of variable markups, the fixed cost generates a positive spillover on the rest of the world as it induces entry of high-quality firms, and it improves the terms of trade of the non-imposing countries. We argue that the benefits of such regulations are not fully realized under non-cooperative policy settings, leading to a call for international cooperation in setting regulations. We estimate our model and apply its gravity formulation to quantify the global welfare consequences of altering regulatory policies, the extent of the positive externalities across countries, the effects of cooperation, and the comparison with further tariff liberalization. Our analysis reveals that the entry of new high-quality firms, rather than changes in terms of trade, is the main quantitative driver of international spillovers.
Previously circulated as "Quality Misallocation, Trade, and Regulations". CESifo Working Paper No. 9041
with Ariel Weinberger
[Video (older version)] [CESifo]
This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a fixed cost that any firm selling to an economy must pay, consistent with stylized facts that we present. We demonstrate that in the presence of variable markups, the fixed cost generates a positive spillover on the rest of the world as it induces entry of high-quality firms, and it improves the terms of trade of the non-imposing countries. We argue that the benefits of such regulations are not fully realized under non-cooperative policy settings, leading to a call for international cooperation in setting regulations. We estimate our model and apply its gravity formulation to quantify the global welfare consequences of altering regulatory policies, the extent of the positive externalities across countries, the effects of cooperation, and the comparison with further tariff liberalization. Our analysis reveals that the entry of new high-quality firms, rather than changes in terms of trade, is the main quantitative driver of international spillovers.
Large Firms, Consumer Heterogeneity and the Rising Share of Profits. January 2022
Revise and Resubmit at American Economic Journal: Macroeconomics
NBER Working Paper No. 29646
with Robert C. Feenstra and Mingzhi Xu
[Video (older version)] [NBER]
We examine the relationship between large firms and the rising profit share in a model that features oligopolistic competition and consumer heterogeneity. Conditional on the sales distribution, the presence of consumer heterogeneity increases the profit share because it increases firm-level markups. Using data on purchases at the household-barcode level from Nielsen, we quantify the role of consumer heterogeneity, finding that the aggregate markup and the profit share are 8 and 3 percentage points larger than those predicted by a model of a representative consumer. Furthermore, we find that the profit share has been increasing over time and that firm targeting of consumer types plays a role in explaining this rise.
Revise and Resubmit at American Economic Journal: Macroeconomics
NBER Working Paper No. 29646
with Robert C. Feenstra and Mingzhi Xu
[Video (older version)] [NBER]
We examine the relationship between large firms and the rising profit share in a model that features oligopolistic competition and consumer heterogeneity. Conditional on the sales distribution, the presence of consumer heterogeneity increases the profit share because it increases firm-level markups. Using data on purchases at the household-barcode level from Nielsen, we quantify the role of consumer heterogeneity, finding that the aggregate markup and the profit share are 8 and 3 percentage points larger than those predicted by a model of a representative consumer. Furthermore, we find that the profit share has been increasing over time and that firm targeting of consumer types plays a role in explaining this rise.
Work in Progress
Publications - Pre Ph.D.
Exchange Rate Devaluation and Reshuffling of Global Jobs
Journal of Economic Integration, 2013; 28(2):241-268. Awarded the Dae-Yang Prize for best article in 2013.
with F. Sdogati
[Published Version]
Journal of Economic Integration, 2013; 28(2):241-268. Awarded the Dae-Yang Prize for best article in 2013.
with F. Sdogati
[Published Version]