This paper quantifies employer market power in US manufacturing and how it has changed
over time. Using administrative data, we estimate plant-level markdowns—the ratio between …

Growth has fallen in the US amid a rise in firm concentration. Market share has shifted to low
labour share firms, while within-firm labour shares have actually risen. We propose a theory …

Comparing US gross domestic product to the sum of measured payments to labor and
imputed rental payments to capital results in a large and volatile residual or “factorless” …

How does an economy's production structure determine its macroeconomic response to
sectoral distortions? We study a static, multisector framework in which production is …

We investigate the link between real exchange rates and sectoral TFP for eurozone
countries. We show that real exchange rate variation, both cross-country and time-series …

A countercyclical markup of price over marginal cost is a key transmission mechanism for
demand shocks in New Keynesian (NK) models. This paper reexamines the foundation of …

We study how an economy's production structure determines the response of aggregate
output and employment to sectoral financial shocks. In our framework, economic production …

I develop a version of the New Keynesian model with insider–outsider labor markets and
hysteresis that can account for the high persistence of European unemployment. I study the …

Employment and hours are more cyclical than dictated by productivity and consumption.
This intratemporal labor wedge can arise from product or labor market distortions. Based on …

Precautionary pricing and increasing markups in representative‐agent DSGE models with
nominal rigidities are commonly used to generate negative output effects of uncertainty …