Papers Containing Keywords(s): 'market'
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Viewing papers 1 through 10 of 205
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Working PaperFood Fight: U.S. Exporters' Adjustments to Russia's 2014 Agricultural Import Ban
December 2025
Working Paper Number:
CES-25-79
This paper examines the impact of Russia's 2014 food-import ban on U.S. firms that exported banned products to Russia. Using confidential customs transaction data, we implement triple-difference and dosage-response approaches to identify how firms adjust to the sudden loss of a market. Following the ban, treated firms experienced a 30 percentage-point decrease in the probability of exporting banned food to Russia relative to control firms. However, there is substantial heterogeneity by pre-ban reliance on the Russian market: heavily reliant firms were significantly less likely to survive once the ban was in place, and survivors experienced large reductions in revenue (19%) and total export value (49%) for each standard deviation increase in Russian market exposure. We find evidence of export redirection to neighboring countries, though it is insufficient to offset losses. Any negative impacts on survivors dissipate by five years post-ban.View Full Paper PDF
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Working PaperBorrowing Constraints, Markups, and Misallocation
December 2025
Working Paper Number:
CES-25-75
We document new facts that link firms' markups to borrowing constraints: (1) less constrained firms within an industry have higher markups, especially in industries where assets are difficult to borrow against and firms rely more on earnings to borrow; (2) markup dispersion is also higher in industries where firms rely more on earnings to borrow. We explain these relationships using a standard Kimball demand model augmented with borrowing against assets and earnings. The key mechanism is a two-way feedback between markups and borrowing constraints. First, less constrained firms charge higher markups, as looser constraints allow them to attain larger market shares. Second, higher markups relax borrowing constraints when firms rely on earnings to borrow, as those with higher markups have higher earnings. This two-way feedback lowers TFP losses from markup dispersion, particularly when firms rely on earnings to borrow.View Full Paper PDF
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Working PaperNational Chains and Trends in Retail Productivity Dispersion
September 2025
Working Paper Number:
CES-25-64
Productivity dispersion within an industry is an important characteristic of the business environment, potentially reflecting factors such as market structure, production technologies, and reallocation frictions. The retail trade sector saw significant changes between 1987 and 2017, and dispersion statistics can help characterize how it evolved over this period. In this paper, we shed light on this transformation by developing public-use Dispersion Statistics on Productivity (DiSP) data for the retail sector for 1987 through 2017. We find that from 1987 through 2017, dispersion increased between retail stores at the bottom and middle of the productivity distribution. However, when we weight stores by employment dispersion, the middle of the distribution is lower initially and decreases over time. These patterns are consistent with a retail landscape featuring more and more activity taking place in chain stores with similar productivity. Firm-based dispersion measures exhibit a similar pattern. Further investigation reveals that there is substantial heterogeneity in dispersion levels across industries.View Full Paper PDF
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Working PaperAn Anatomy of U.S. Establishments' Trade Linkages in Global Value Chains
June 2025
Working Paper Number:
CES-25-44
Global value chains (GVC) are a pervasive feature of modern production, but they are hard to measure. Using confidential microdata from the U.S. Census Bureau, we develop novel measures of the linkages between U.S. manufacturing establishments' imports and exports. We find that for every dollar of exports, imported inputs represent 13 cents in 2002 and 20 cents by 2017. Examining GVC trade flows in a gravity framework, we find that these flows are higher within 'round-trip' (input and output market is the same) linkages, regional trade agreements, and multinational firm boundaries. The strong complementarities between input and output markets are muted by the proportionality assumptions embedded in global input-output tables. Finally, with an off-the-shelf model, we show the round-trip results can be obtained when firm-specific sourcing and exporting fixed costs are linked.View Full Paper PDF
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Working PaperPrivate Equity and Workers: Modeling and Measuring Monopsony, Implicit Contracts, and Efficient Reallocation
June 2025
Working Paper Number:
CES-25-37
We measure the real effects of private equity buyouts on worker outcomes by building a new database that links transactions to matched employer-employee data in the United States. To guide our empirical analysis, we derive testable implications from three theories in which private equity managers alter worker outcomes: (1) exertion of monopsony power in concentrated markets, (2) breach of implicit contracts with targeted groups of workers, including managers and top earners, and (3) efficient reallocation of workers across plants. We do not find any evidence that private equity-backed firms vary wages and employment based on local labor market power proxies. Wage losses are also very similar for managers and top earners. Instead, we find strong evidence that private equity managers downsize less productive plants relative to productive plants while simultaneously reallocating high-wage workers to more productive plants. We conclude that post-buyout employment and wage dynamics are consistent with professional investors providing incentives to increase productivity and monitor the companies in which they invest.View Full Paper PDF
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Working PaperMulti-Market Contact in International Trade; Evidence from U.S. Battery Exporters
May 2025
Working Paper Number:
CES-25-32
When competitors compete in more than one market they are said to have multi-market contact (MMC). Firms with MMC are more likely collude to avoid cross-market retaliation. This paper investigates the impact of MMC among U.S. battery exporters on the prices they set in foreign markets using confidential export transaction data provided by the U.S. Census Bureau. The ability of firms to exploit MMC for collusive gain in international markets can be both detrimental to import-dependent consumers and harder for anti-trust authorities to detect. Motivated by litigation finding evidence of collusive behavior by multi-national battery manufacturers, MMC has an upward effect on export prices set by U.S. battery exporters. These results are robust across different panel regression specifications using different measures of MMC.View Full Paper PDF
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Working PaperPlace Based Economic Development and Tribal Casinos
April 2025
Working Paper Number:
CES-25-24
Tribal lands in the U.S. have historically experienced some of the worst economic conditions in the nation. We review some existing research on the effect of American Indian tribal casinos on various measures of local economic development. This is an industry that began in the early 1990s and currently generates more than $40 billion annually. We also review the state of the literature on the effects of casino operations on communities in or adjacent to tribal areas. Using a new dataset linking individual and enterprise-level data longitudinally, this study examines the industry- and location-specific impacts of tribal casino operations. We focus in particular on the employment of American Indians. We document positive flows from unemployment and non-casino geographies to work in sectors related to casino operations. Tribal casinos differ from other standard place-based economic development projects in that they are focused on a single industry; we discuss these differences and note that some of the positive spillover effects may be similar to other, more standard place-based policies. Finally, we discuss additional and open-ended questions for future research on this topic.View Full Paper PDF
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Working PaperSize Matters: Matching Externalities and the Advantages of Large Labor Markets
April 2025
Working Paper Number:
CES-25-22
Economists have long hypothesized that large and thick labor markets facilitate the matching between workers and firms. We use administrative data from the LEHD to compare the job search outcomes of workers originally in large and small markets who lost their jobs due to a firm closure. We define a labor market as the Commuting Zone'industry pair in the quarter before the closure. To account for the possible sorting of high-quality workers into larger markets, the effect of market size is identified by comparing workers in large and small markets within the same CZ, conditional on workers fixed effects. In the six quarters before their firm's closure, workers in small and large markets have a similar probability of employment and quarterly earnings. Following the closure, workers in larger markets experience significantly shorter non-employment spells and smaller earning losses than workers in smaller markets, indicating that larger markets partially insure workers against idiosyncratic employment shocks. A 1 percent increase in market size results in a 0.015 and 0.023 percentage points increase in the 1-year re-employment probability of high school and college graduates, respectively. Displaced workers in larger markets also experience a significantly lower need for relocation to a different CZ. Conditional on finding a new job, the quality of the new worker-firm match is higher in larger markets, as proxied by a higher probability that the new match lasts more than one year; the new industry is the same as the old one; and the new industry is a 'good fit' for the worker's college major. Consistent with the notion that market size should be particularly consequential for more specialized workers, we find that the effects are larger in industries where human capital is more specialized and less portable. Our findings may help explain the geographical agglomeration of industries'especially those that make intensive use of highly specialized workers'and validate one of the mechanisms that urban economists have proposed for the existence of agglomeration economies.View Full Paper PDF
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Working PaperThe Effect of Oil News Shocks on Job Creation and Destruction
January 2025
Working Paper Number:
CES-25-06
Using data from the Annual Survey of Manufactures (ASM) and the Census of Manufacturing (CMF), we construct quarterly measures of job creation and destruction by 3-digit NAICS industries spanning from 1980Q3-2016Q4. These long series allow us to address three questions regarding the effect of oil news shocks. What is the average effect of oil news shocks on sectoral labor reallocation? What characteristics explain the observed heterogeneity in the average responses across industries? Has the response of US manufacturing changed over time? We find evidence that oil news shocks exert only a moderate effect on total manufacturing net employment growth but lead to a significant increase in job reallocation. However, we find a high degree of heterogeneity in responses across industries. We then show that the cross-industry variation in the sensitivity of net employment growth and excess job reallocation to oil news shocks is related to differences in energy costs, the rate of energy to capital expenditures, and the share of mature firms in the industry. Finally, we illustrate how the dynamic response of sectoral job creation and destruction to oil news shocks has declined since the mid-2000s.View Full Paper PDF
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Working PaperA Granular Look into Firms' Cash Portfolios
January 2025
Working Paper Number:
CES-25-02
This paper uses confidential Census data to provide a granular look into the U.S. firms' cash holding portfolios encompassing nearly four decades. The data provide information on short-term investment securities held in the portfolios, such as time deposits, commercial paper and government securities in addition to cash. The security-level information reveals that portfolios of the same size can have very different levels of liquidity and riskiness as the composition of securities varies considerably across firms and over time. Firms with strong precautionary motives tend to allocate more toward relatively more liquid and less risky securities. Firms actively rebalance their portfolios in response to changing economic conditions or idiosyncratic shocks to securities they hold. Event studies using shocks to Treasury securities and commercial paper shows firms shifting away from affected securities and simultaneously adjusting weights of other securities.View Full Paper PDF
