Selected Work In Progress
Stellar Skills: Superstar Firms and the Specialization of Human Capital
Abstract: Uploaded soon.
Misallocation in Product and Labor Markets (presented at Princeton University)
Risk-based Organizational Choices (third year paper, presented at Princeton University)
Market Entry and Plant Location in Multiproduct Firms (with Juanma Castro-Vincenzi, Eduardo Morales and Alejandro Sabal)
Abstract: We develop a quantitative model in which firms decide where to produce and sell each of their products. Cannibalization forces imply that our model exhibits substitutabilities in the firm’s decision to sell different products in the same destination market; transport costs increasing in distance and increasing returns at the plant-product level imply our model displays complementarities in the firm decision to produce and sell the same model in geographically close markets. We provide a novel solution algorithm for multiple discrete choice single-agent problems where the sign of the interdependence between any pair of choices is known. We estimate our model using our solution method and data on the global car industry with information by firm, country, and car model on production, sales, and prices. We evaluate the effect of recently proposed production subsidies, consumption subsidies, and tariffs on the global structure of automobile production and prices and access to car varieties across countries.