Search Results

Showing results 1 to 10 of approximately 30.

(refine search)
SORT BY: PREVIOUS / NEXT
Jel Classification:D22 

Working Paper
Political Connections, Allocation of Stimulus Spending, and the Jobs Multiplier

Using American Recovery and Reinvestment Act (ARRA) data, we show that firms lever their political connections to win stimulus grants and that public expenditure channeled through politically connected firms hinders job creation. We build a unique database that links information on campaign contributions, state legislative elections, firm characteristics, and ARRA grant allocation. Using exogenous variation in political connections based on ex-post close elections held before ARRA, we causally show that politically connected firms are 38 percent more likely to secure a grant. Based on an ...
FRB Atlanta Working Paper , Paper 2021-13

Working Paper
Business Exit During the COVID-19 Pandemic: Non-Traditional Measures in Historical Context

Lags in official data releases have forced economists and policymakers to leverage "alternative" or "non-traditional" data to measure business exit resulting from the COVID- 19 pandemic. We first review official data on business exit in recent decades to place the alternative measures of exit within historical context. For the U.S., business exit is countercyclical and fairly common, with about 7.5 percent of firms exiting annually in recent years. Both the high level and the cyclicality of exit are driven by very small firms and establishments. We then explore a range of alternative measures ...
Finance and Economics Discussion Series , Paper 2020-089r1

Working Paper
Market exposure and endogenous firm volatility over the business cycle

First Draft: November 1, 2011 We propose a theory of endogenous firm-level volatility over the business cycle based on endogenous market exposure. Firms that reach a larger number of markets diversify market-specific demand risk at a cost. The model is driven only by total factor productivity shocks and captures the business cycle properties of firm-level volatility. Using a panel of U.S. firms (Compustat), we empirically document the countercyclical nature of firm-level volatility. We then match this panel to Compustat?s Segment data and the U.S. Census?s Longitudinal Business Database (LBD) ...
Working Papers , Paper 14-12

Working Paper
Do long-haul truckers undervalue future fuel savings?

The U.S. federal government enacted fuel efficiency standards for medium and heavy trucks for the first time in September 2011. Rationales for using this policy tool typically depend upon frictions existing in the marketplace or consumers being myopic, such that vehicle purchasers undervalue the future fuel savings from increased fuel efficiency. We measure by how much long-haul truck owners undervalue future fuel savings by employing recent advances to the classic hedonic approach to estimate the distribution of willingness-to-pay for fuel efficiency. We find significant heterogeneity in ...
Finance and Economics Discussion Series , Paper 2015-118

Working Paper
The Welfare Costs of Misaligned Incentives: Energy Inefficiency and the Principal-Agent Problem

In many settings, misaligned incentives and inadequate monitoring lead employees to take self-interested actions contrary to their employer's wishes, giving rise to the classic principal-agent problem. In this paper, I identify and quantify the costs of misaligned incentives in the context of an energy efficiency appliance replacement program. I show that contractors (agents) hired by the electric utility (the principal) increase their compensation by intentionally misreporting program data to deliberately authorize replacement of non-qualified refrigerators. I provide empirical estimates of ...
Finance and Economics Discussion Series , Paper 2019-071

Report
Monopolies Inflict Great Harm on Low- and Middle-Income Americans

Today, monopolies inflict great harm on low- and middle-income Americans. One particularly pernicious way they harm them is by sabotaging low-cost products that are substitutes for the monopoly products. I'll argue that the U.S. housing crisis, legal crisis, and oral health crisis facing the low- and middle-income Americans are, in large part, the result of monopolies destroying low-cost alternatives in these industries that the poor would purchase. These results would not surprise those studying monopolies in the first half of the 20th century. During this period extensive evidence was ...
Staff Report , Paper 601

Working Paper
Business Exit During the COVID-19 Pandemic: Non-Traditional Measures in Historical Context

Given lags in official data releases, economists have studied "alternative data" measures of business exit resulting from the COVID-19 pandemic. Such measures are difficult to understand without historical context, so we review official data on business exit in recent decades. Business exit is common in the U.S., with about 7.5 percent of firms exiting annually in recent years, and is countercyclical (particularly recently). Both the high level and the cyclicality of exit are driven by very small firms. We explore a range of alternative measures and indicators of business exit, including ...
Finance and Economics Discussion Series , Paper 2020-089

Report
International shocks and domestic prices: how large are strategic complementarities?

How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firms? price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the elasticities of a firm?s price response both to its own cost shocks and to the price changes of its competitors. Our approach takes advantage of a new micro-level data set for the Belgian manufacturing sector, which contains detailed information on firm domestic prices, marginal costs, and competitor prices. The ...
Staff Reports , Paper 771

Working Paper
Political Connections, Allocation of Stimulus Spending, and the Jobs Multiplier

Using American Recovery and Reinvestment Act (ARRA) data, we show that firms lever their political connections to win stimulus grants and that public expenditure channeled through politically connected firms hinders job creation. We build a unique database that links information on campaign contributions, state legislative elections, firm characteristics, and ARRA grant allocation. Using exogenous variation in political connections based on ex-post close elections held before ARRA, we causally show that politically connected firms are 38 percent more likely to secure a grant. Based on an ...
Finance and Economics Discussion Series , Paper 2021-005r1

Working Paper
The Economic Effects of Trade Policy Uncertainty

We study the effects of unexpected changes in trade policy uncertainty (TPU) on the U.S. economy. We construct three measures of TPU based on newspaper coverage, firms' earnings conference calls, and aggregate data on tari rates. We document that increases in TPU reduce investment and activity using both firm-level and aggregate macroeconomic data. We interpret the empirical results through the lens of a two-country general equilibrium model with nominal rigidities and firms' export participation decisions. In the model as in the data, news and increased uncertainty about higher future ...
International Finance Discussion Papers , Paper 1256

FILTER BY year

FILTER BY Content Type

Working Paper 22 items

Report 8 items

FILTER BY Author

Decker, Ryan A. 6 items

Schmitz, James A. 4 items

Choi, Joonkyu 3 items

Crane, Leland D. 3 items

Penciakova, Veronika 3 items

Saffie, Felipe 3 items

show more (56)

FILTER BY Jel Classification

E24 8 items

E32 5 items

D42 4 items

J23 4 items

K0 4 items

show more (53)

FILTER BY Keywords

Firm dynamics 6 items

Inequality 4 items

Monopoly 4 items

Sabotage 4 items

American Recovery and Reinvestment Act 3 items

COVID-19 3 items

show more (109)

PREVIOUS / NEXT