Develops a multi-sector general equilibrium model with imperfect labor mobility to study optimal export taxation under policy constraints. Shows that when export taxes can be applied in only one sector, optimal policy deviates from the standard inverse-elasticity benchmark due to cross-sector spillovers arising from labor reallocation. Derives a closed-form solution for the optimal export tax and shows that sufficiently strong spillovers can reverse the sign of the optimal policy (export subsidy).
Working Paper: Markup Distortions and Optimal Non-Discriminatory Industrial Policy (with Marc Melitz, Gianmarco Ottaviano, and Davide Suverato) [Draft]
Characterizes when first-best non-discriminatory industrial policy is feasible in a monopolistic-competition model with heterogeneous firms and additive separable demand. Shows that such policies exist if and only if demand is Bulow-Pfleiderer, and derives the corresponding set of optimal policies. Shows that, outside CES, first-best implementation requires a per-unit subsidy. Derives a sufficient-statistics characterization of the optimal policy.
Working Paper: Industrial Policy and Short-Run Distributional Effects [Draft]
Studies how industrial policy designed to improve long-run efficiency can create unequal short-run welfare effects across local labor markets. The project combines a trade model with U.S. commuting-zone data to quantify which places gain or lose before labor markets adjust.
Work in Progress: Distributional Gains from International Trade
Develops a sufficient-statistics framework to measure gains from trade across income groups in a multi-sector model with heterogeneous consumption patterns. Shows that distributional effects are governed by sectoral trade elasticities and income-specific expenditure shares. Applies the framework to U.S. data (World Input-Output Database and Consumer Expenditure Survey) and finds that gains from trade vary across income groups.