Working Papers
Abstract: US corporate concentration has been persistently rising over the past century and productivity growth has been concurrently declining. This paper builds a continuous-time Schumpeterian growth model in which a uniform increase in knowledge difficulty increases the relative growth of leading firms compared to the aggregate and endogenously thickens the Pareto tail of firms' productivity distribution, i.e. growth determines market structure. With a demand system featuring variable demand elasticities, the model explains a large part of the changes in aggregate growth, corporate concentration, markup, labor share, R&D cost, entry and exit rates, as well as job creation and destruction rates in the US since the 1980s. The model can also accommodate increasing concentration with a stable markup and labor share in the pre-1980 period by accounting for the role of economic integration.
Econ Job Market Best Paper Award (UniCredit Foundation and the European Economic Association)
China in Europe, with Pauline Lesterquy and Hélène Rey
Abstract: Following its accession into the World Trade Organization in 2001, China has become an international trading power. Chinese investments overseas have also sizeably increased and the arrival of the Belt and Road Initiative on European shores has made headlines news. This paper explores whether the People's Bank of China' s monetary policy spillovers are reaching European companies. Our preliminary results using the ORBIS dataset for a selection of European countries show that investment decreases by 3% after a one standard deviation shock of Chinese monetary policy. We plan to characterize the sectors in which the transmission is the strongest and to identify the transmission channels. French firm-level custom and ownership data have been requested to establish whether trade linkages or financing effects through Chinese banks are the most relevant ones.
Work in Progress
Invisible Assets, Visible Growth: The Economic Impact of Intangible Amortization, with Joseba Martinez and Mohammad Naderitabar
A Theory of Global Financial Cycle, with Hélène Rey
