Industrial organisation

Camille Landais, Giulia Giupponi, 07 December 2018

Even though countries all over the developed world implemented short-time work policies during the great recession, we didn't know whether they worked. Now we do: Camille Landais and Giulia Giupponi of the London School of Economics tell Tim Phillips whether short-time work protects workers, firms or economies.

Ufuk Akcigit, Salome Baslandze, Francesca Lotti, 30 November 2018

Corruption, especially rent-seeking behaviour by politicians and firms, has adverse consequences for competition and ultimately growth. This column explores how political connections influence firms’ outcomes in Italy. The results point to a ‘leadership paradox’, whereby market-leading firms are more likely to be politically connected than their competitors, but less likely to innovate. At the aggregate level, political connections tend to be associated with worse industry dynamics, including lower entry, reallocation, growth, and productivity.

Ufuk Akcigit, 23 November 2018

Firms like to be politically connected, because it makes it easier for them to do business. But is it good for the rest of us? Ufuk Akcigit of the University of Chicago tells Tim Phillips about the consequences of connecting to power.

Yasuyuki Todo, Yuzuka Kashiwagi, Petr Matous, 19 November 2018

Global producers, service providers, and international financial institutions are becoming increasingly intertwined through expanding supply chains. This column uses new firm-level data on the impact of Hurricane Sandy in 2012 to examine how economic shocks are propagated by global supply chains. While the hurricane’s negative shock appeared to propagate among firms within the US, the shock does not seem to have spread internationally. The findings suggest that access to global opportunities and to alternative partners can be a source of resilience against disaster shocks for internationalised firms.

Márta Bisztray, Miklós Koren, Adam Szeidl, 18 November 2018

Several recent studies have used network methods to explore the spatial spillovers within cities. This column adds to this literature by exploring how the spatial and managerial networks in Budapest influence firms’ import decisions. A peer in the same building with import experience from a specific country has a strong positive effect on the probability that a firm will start importing from that country. These findings point to the importance of social multipliers in facilitating the diffusion of good business practices. 

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