Publications

Due to its impact on nominal firm profits, price rigidity amplifies the response of entry and
exit to adverse supply shocks, such as COVID-19. This “entry-exit multiplier” triggers substantial
magnification of the welfare losses due to negative supply...

We analyze how heterogeneous firms in a regional trade area (RTA) respond to
rules of origin (RoO). Firms can source a continuum of inputs from both within and
outside the RTA, and choose whether to comply with the RoO or pay a tariff penalty.
We show how a...

We decompose the “China shock” into two components that induce different
adjustments for firms exposed to Chinese exports: an output shock affecting firms
selling goods that compete with similar imported Chinese goods, and an input
supply shock affecting...

Two central insights from the Schumpeterian approach to innovation and growth are that
the pace of innovation is endogenously determined by the expectation of future prots and
that growth is inherently a process of creative destruction. As international...

This paper investigates the effect of export shocks on innovation. On the one hand a positive shock increases market size and therefore innovation incentives for all firms. On the other hand it increases competition as more firms enter the export market...

We provide a review of the recent literature – both theoretical and empirical – analyzing
the multi-dimensional connections between globalization and innovation. We
develop a model that features many of those mechanisms that connect trade and innovation.
It...

We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, those French firms skew their export sales towards their best...