Industrial organisation

Emin Dinlersoz, Henry Hyatt, Sebnem Kalemli-Ozcan, Veronika Penciakova, 09 January 2019

The financing behaviour of private US firms has been somewhat neglected in the firm dynamics literature. This column presents a new dataset for studying these firms’ behaviour and explores how the Great Recession affected their growth. The results show substantial heterogeneity in leverage by firm age and size among private firms, but not among public firms. 

Emmanuel Dhyne, Jozef Konings, Jeroen Van den bosch, Stijn Vanormelingen, 07 January 2019

Although information technology has reshaped the way businesses operate, measuring IT capital in firms is challenging. Using an exceptionally rich firm-level dataset from Belgium, this column finds that large firms benefit more from IT than small firms, and that IT explains about 10% of the productivity dispersion. IT has contributed to Belgian GDP and productivity growth prior to the Global Crisis, but the recession seems to have led firms to forgo investment in IT. Achieving optimal IT investment levels could reinvigorate productivity growth.

Sharmin Sazedj, João Amador, José Tavares, 24 December 2018

When appointing a CEO, firms can choose a newcomer or someone who has been at the firm for a long time. Using data on Portuguese firms in the wake of the Global Crisis, this column finds no performance gap between newcomers and experienced CEOs in the period prior to the crisis. During the crisis, however, firms run by newcomer CEOs outperformed those run by experienced insiders. Newcomers attain higher productivity by making different decisions regarding personnel, expenditure, investment, and international trade. 

Elisabeth Kempf, Margarita Tsoutsoura, 21 December 2018

Partisanship in the US is on the rise. With growing disagreement across voters of different political parties on key issues, understanding the potential implications of this trend for the US economy is of first-order importance. This column examines the degree to which partisan ideology affects the decisions of financial analysts. Using a novel dataset that links credit rating analysts to party affiliations from voter registration records, it shows that analysts who are not affiliated with the US president's party are more likely to downward-adjust corporate credit ratings.

Alexis Antoniades, Sofronis Clerides, 16 December 2018

Understanding how firms respond to demand shocks has important insights on firm and consumer behaviour. To date, firm responses have been mostly been examined in isolation. This column uses scanner data to explore how Danish firms and their competitors responded to a boycott in ten Arab states in 2006. Results show that Danish firms responded on the intensive margin by lowering prices, while their competitors responded on the extensive margin by introducing new products.

Other Recent Articles:

Events

CEPR Policy Research