Pre-production Papers

The following papers, listed alphabetically by the first author's last name, have been accepted for publication in JEEA, and can be downloaded in in the EEA membership log in area. 

24 January 2023

Dynamics of Large Multinationals

Elhanan Helpman
, Benjamin Niswonger

Multinational enterprises are very large multi-product firms. To capture salient features of the data, we develop a model of large multinational enterprises, each one producing a continuum of products. These outsized firms compete as oligopolists in a domestic and foreign market, facing competitive pressure from monopolistically competitive single-product firms. The multinational enterprises engage in foreign direct investment (FDI) in order to expand the product scope of their foreign affiliates, and they invest in research and development (R&D) in order to invent new products.

7 December 2022

Inattention Matters: An Analysis of Consumers' Inaction in Choosing a Water Tariff

Florian Heiss, Carmine Ornaghi, Mirco Tonin

This paper studies consumers’ choice between two different water tariffs. We document a large inaction in a novel setting where customers face a binary decision and receive simple, detailed and personalized information about the financial savings they would obtain if they were to switch water tariff. Our empirical framework separates two sources of inertia: inattention and switching costs. The model estimates that half of the customers that would benefit from changing tariff are not aware of the opportunity they are offered. Conditional on paying attention, we estimate median switching costs to be around £100.

6 May 2022

On Risk and Time Pressure: When to Think and When to Do

Christoph Carnehl, Johannes Schneider

We study the tradeoff between fundamental risk and time. A time-constrained agent has to solve a problem. She dynamically allocates effort between implementing a risky initial idea and exploring alternatives. Discovering an alternative implies progress that has to be converted to a solution. As time runs out, the chances of converting it in time shrink.

5 October 2021

Organizing Competition for the Market

Elisabetta Iossa, 
Patrick Rey, 
Michael Waterson

We study competition for the market in a setting where incumbents (and, to a lesser extent, neighbouring incumbents) benefit from a cost or information advantage. We first compare the outcome of staggered and synchronous tenders, before drawing the implications for market design. We find the timing of tenders interrelates with the likelihood of monopolisation.

10 March 2021

The Adjustment of Labor Markets to Robots

Wolfgang Dauth, Sebastian Findeisen, Jens Suedekum, Nicole Woessner

We use detailed administrative data to study the adjustment of local labor markets to industrial robots in Germany. Robot exposure, as predicted by a shift-share variable, is associated with displacement effects in manufacturing, but those are fully offset by new jobs in services.

26 January 2023

The Effects of Government Spending in the Eurozone

Ricardo Duque Gabriel, 
Mathias Klein
, Ana Sofia Pessoa

Using a newly assembled rich dataset at the regional level, this paper provides novel empirical evidence on the effects of fiscal policy in the Eurozone. Our baseline estimates reveal a government spending relative output multiplier around 2, an employment multiplier of 1.4, and a cost per job created of approximately €30,000. Moreover, we find that a regional fiscal stimulus leads to a significant increase in private investment, productivity, and durable consumption.

26 January 2023

The Human Cost of Collusion: Health Effects of a Mexican Insulin Cartel

Aaron Barkley

Despite recent attention to the role of competition in determining health outcomes in developed nations, little is known about how market power impedes access to quality care in lower-income countries. This paper studies the effects of policy changes that stopped collusion among firms supplying insulin to one of Mexico’s largest health care providers.

5 March 2021

The Impact of the First Professional Police Forces on Crime

Anna Bindler, Randi Hjalmarsson

This paper evaluates the effect on crime of creating a fundamental modern-day institution: centralized professional police forces tasked with preventing crime. We study the 1829 formation of the London Metropolitan Police – the first professional force worldwide.

31 January 2023

The Political Economy Consequences of China's Export Slowdown

Filipe R. Campante, Davin Chor, Bingjing Li

We study how adverse economic shocks influence political outcomes in strong authoritarian regimes, by examining the export slowdown in China during the mid-2010s. We first show that prefectures that experienced a more severe export slowdown witnessed a significant increase in incidents of labor strikes, using a shift-share instrumental variables strategy. The prefecture party secretary was subsequently more likely to be replaced by the central government, particularly if the rise in strikes was greater than in other prefectures that saw comparable export slowdowns.

15 December 2022

Women’s Labor Market and Fertility Responses to a Health Innovation

Sonia Bhalotra
, Atheendar Venkataramani
, Selma Walther

We investigate women’s fertility, labor and marriage market responses to a health innovation that led to reductions in mortality from treatable causes, and especially large declines in child mortality. We find delayed childbearing, with lower intensive and extensive margin fertility, a decline in the chances of ever having married, increased labor force participation and an improvement in occupational status.