Market Power and Firm-to-Firm Innovation Pass-Through Job Market Paper
The Business Cycle Volatility Puzzle: Emerging vs Developed Economies with Rafael Guntin Tapan Mitra Memorial Prize for Outstanding 3rd Year Paper
We study the drivers of business cycle volatility differences between emerging and developed economies.
We develop a multisector small open economy framework with heterogeneous firms and production linkages in which firms are subject to sectoral and firm-level TFP shocks and international prices shocks.
Using sector-level data, firm-level micro data, and international trade data from various developed and emerging economies, we quantity the relevant model-based sufficient statistics.
We find that differences in the sectoral composition and the distribution of firms explain roughly half of the excessive business cycle volatility in emerging economies.
Finally, we find that the contribution of international prices is sensitive to the households' preferences.
On the Investment Network and Development with Julieta Caunedo STEG PhD Research Grant
Capital accumulation and the systematic reallocation of economic activities across sectors are two of the most salient features of the process of economic development.
These two processes are interconnected through the production of capital of various types and the differences in its usage intensity across sectors.
This information is summarized by the investment network. Our paper introduces the first harmonized measures of the investment network across countries at different
stages of development, and proposes a theory that characterizes disparities in income per capita (and growth rates) across countries based on these connections.
Through counterfactual exercises, we show that 54% of disparities in income per capita can be accounted for by disparities in the investment network.
This role is mediated by the intensity of capital use in these economies and its interaction with the IO structure.
We show that imposing a common investment structure across countries, i.e. the one observed in the US in 2014, exacerbates income disparities.
This result suggests that poorer economies may be choosing investment bundles that align with their sectorial productivities and stage of development.
