Published Papers
Trade Liberalization and Chinese Students in U.S. Higher Education, (with Gaurav Khanna, Kevin Shih, Mingzhi Xu, and Miaojie Yu).
CGD Working Paper Version (WP #536) (February 2021)
Review of Economics and Statistics (forthcoming)
Replication Package
Quality Heterogeneity and Misallocation: The Welfare Benefits of Raising your Standards, (with Luca Macedoni)
Journal of International Economics, January 2022, 134:103544
Working Paper Version
Replication Package [Web Appendix: The CES Case] [Web Appendix: Other VES Cases] [Web Appendix: The Planner's Allocation]
Openness and Factor Shares: is Globalization Always Bad for Labor?, (with Asli Leblebicioglu).
Journal of International Economics, January 2021, 128:103406
Working Paper Version
Export Tax Rebates and Resource Misallocation: Evidence from a Large Developing Country, (with Qian Xuefeng and Mahmut Yasar).
Canadian Journal of Economics, November 2021, 54(4).
Markups and Misallocation with Evidence from Exchange Rate Shocks
Journal of Development Economics, September 2020, 146:1024-1094.
Working Paper Version
Credit and the Labor Share: Evidence from U.S. States (with Asli Leblebicioglu).
The Economic Journal, August 2020, 130: 1782–1816.
Web Appendix
Full replication files available on the EJ site
Exporter Heterogeneity and Price Discrimination: A Quantitative View (with Ina Simonovska and Jae Wook Jung).
Journal of International Economics, January 2019, 116:103-124.
Previously NBER Working Paper No. 21408.
WEB APPENDIX (See this appendix for an estimation of various models of monopolistic competition with non-homothetic preferences.)
Working Paper Version
FDI, Productivity and Country Growth: An Overview, 2009, (with Silvio Contessi).
Federal Reserve Bank of St. Louis Review, 91(2):61-78.
CGD Working Paper Version (WP #536) (February 2021)
Review of Economics and Statistics (forthcoming)
Replication Package
Quality Heterogeneity and Misallocation: The Welfare Benefits of Raising your Standards, (with Luca Macedoni)
Journal of International Economics, January 2022, 134:103544
Working Paper Version
Replication Package [Web Appendix: The CES Case] [Web Appendix: Other VES Cases] [Web Appendix: The Planner's Allocation]
Openness and Factor Shares: is Globalization Always Bad for Labor?, (with Asli Leblebicioglu).
Journal of International Economics, January 2021, 128:103406
Working Paper Version
Export Tax Rebates and Resource Misallocation: Evidence from a Large Developing Country, (with Qian Xuefeng and Mahmut Yasar).
Canadian Journal of Economics, November 2021, 54(4).
Markups and Misallocation with Evidence from Exchange Rate Shocks
Journal of Development Economics, September 2020, 146:1024-1094.
Working Paper Version
Credit and the Labor Share: Evidence from U.S. States (with Asli Leblebicioglu).
The Economic Journal, August 2020, 130: 1782–1816.
Web Appendix
Full replication files available on the EJ site
Exporter Heterogeneity and Price Discrimination: A Quantitative View (with Ina Simonovska and Jae Wook Jung).
Journal of International Economics, January 2019, 116:103-124.
Previously NBER Working Paper No. 21408.
WEB APPENDIX (See this appendix for an estimation of various models of monopolistic competition with non-homothetic preferences.)
Working Paper Version
FDI, Productivity and Country Growth: An Overview, 2009, (with Silvio Contessi).
Federal Reserve Bank of St. Louis Review, 91(2):61-78.
Papers
International Spillovers of Quality Regulations, Revised June 2023 (with Luca Macedoni)
Revise and resubmit, International Economic Review
Previously circulated as "Quality Misallocation, Regulations, and Trade", CESifo Working Paper Series 9041 (April 2021)
(Video Presentation)
This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a fixed cost that any firm selling to an economy must pay, consistent with stylized facts that we present. We demonstrate that in the presence of variable markups, the fixed cost generates a positive spillover on the rest of the world as it induces entry of high-quality firms, and it improves the terms of trade of the non-imposing countries. We argue that the benefits of such regulations are not fully realized under non-cooperative policy settings, leading to a call for international cooperation in setting regulations. We estimate our model and apply its gravity formulation to quantify the global welfare consequences of altering regulatory policies, the extent of the positive externalities across countries, the effects of cooperation, and the comparison with further tariff liberalization. Our analysis reveals that the entry of new high-quality firms, rather than changes in terms of trade, is the main quantitative driver of international spillovers.
Firm Resiliency: The Role of Spillovers, Revised June 2023 (with Meghana Ayyagari and Yuxi Cheng)
Internet Appendix available here
SSRN Working Paper 4569288
Revise and Resubmit, Journal of Financial and Quantitative Analysis
What role do spillover effects play in firm resilience during crises? Using high-frequency data on over 7 million import transactions, we ask this question in the context of the large trade disruption faced by US importers in the months immediately following the initial COVID-19 shock. While US firms saw a reduction in imports due to Covid-related trade disruptions to their suppliers, these effects were lower for importers in counties that received greater loans under the Paycheck Protection Program (PPP), a government stimulus program aimed at small businesses. While the importers are not direct recipients of PPP loans, a one standard deviation increase in indirect exposure to PPP reduces the effect of the supply shock faced by the firm by approximately one-fifth. The effects are largest in counties with larger number of small suppliers and higher input-output industry linkages, and those with greater share of small and medium enterprises (SMEs). We also see similar effects of PPP preserving job growth at the county level even as the trade shock takes a negative toll on local employment. Our results point to local spillovers between SMEs that were PPP recipients and large importers as being an important determinant of firm resiliency during the pandemic.
Revise and resubmit, International Economic Review
Previously circulated as "Quality Misallocation, Regulations, and Trade", CESifo Working Paper Series 9041 (April 2021)
(Video Presentation)
This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a fixed cost that any firm selling to an economy must pay, consistent with stylized facts that we present. We demonstrate that in the presence of variable markups, the fixed cost generates a positive spillover on the rest of the world as it induces entry of high-quality firms, and it improves the terms of trade of the non-imposing countries. We argue that the benefits of such regulations are not fully realized under non-cooperative policy settings, leading to a call for international cooperation in setting regulations. We estimate our model and apply its gravity formulation to quantify the global welfare consequences of altering regulatory policies, the extent of the positive externalities across countries, the effects of cooperation, and the comparison with further tariff liberalization. Our analysis reveals that the entry of new high-quality firms, rather than changes in terms of trade, is the main quantitative driver of international spillovers.
Firm Resiliency: The Role of Spillovers, Revised June 2023 (with Meghana Ayyagari and Yuxi Cheng)
Internet Appendix available here
SSRN Working Paper 4569288
Revise and Resubmit, Journal of Financial and Quantitative Analysis
What role do spillover effects play in firm resilience during crises? Using high-frequency data on over 7 million import transactions, we ask this question in the context of the large trade disruption faced by US importers in the months immediately following the initial COVID-19 shock. While US firms saw a reduction in imports due to Covid-related trade disruptions to their suppliers, these effects were lower for importers in counties that received greater loans under the Paycheck Protection Program (PPP), a government stimulus program aimed at small businesses. While the importers are not direct recipients of PPP loans, a one standard deviation increase in indirect exposure to PPP reduces the effect of the supply shock faced by the firm by approximately one-fifth. The effects are largest in counties with larger number of small suppliers and higher input-output industry linkages, and those with greater share of small and medium enterprises (SMEs). We also see similar effects of PPP preserving job growth at the county level even as the trade shock takes a negative toll on local employment. Our results point to local spillovers between SMEs that were PPP recipients and large importers as being an important determinant of firm resiliency during the pandemic.
Work In Progress
Regulations for Sale: Quality Standards in Trade with Lobbying (with Luca Macedoni)
Vertical Integration and Financial Frictions (with Asli Leblebicioglu)
Determinant of New Technology Diffusion (with Meghana Ayyagari and Rodimiro Rodrigo)
Vertical Integration and Financial Frictions (with Asli Leblebicioglu)
Determinant of New Technology Diffusion (with Meghana Ayyagari and Rodimiro Rodrigo)
