Work in progress

FDI

Multinational Firms and the Origins of the Rise of Market Power, with Stefania Garetto.

We investigate the origins of the rise of market power that recent literature has documented. To do so, we examine differences in firms' market power depending on their exposure to international markets. We find that new multinationals, that is, firms that have expanded in foreign markets during our sample period, account for the majority of the growth in aggregate mark-ups and market concentration in the last two decades. This finding has important consequences for the distribution of the welfare effects of the rise in market power across countries.

Large Firm Dynamics, with Stefania Garetto.

The literature on trade dynamics documents patterns of entry and exit into and out of foreign markets mostly for small firms. This paper documents a similar dynamic behavior for large firms, distinguishing entry via export and via FDI, and switches across different modes of serving foreign markets. Using news information and firm-level data for a sample of U.S.-based, publicly listed manufacturing firms, we find that: 1. the data exhibit significant entry and exit flows also for large firms, both via export and FDI sales; 2. export status is highly persistent, and FDI status is even more persistent. 3. the international status of the firm is linked to stock market-based financial indicators.

REAL ESTATE

Evidence on Housing Price Predictability, with Stefano Corradin (ECB) and Carles Vergara-Alert (IESE).