Institutional Affiliations: Georgetown University and CESifo
|Comment on The Servicification of the US Economy: The Role of Startups versus Incumbent Firms|
in The Role of Innovation and Entrepreneurship in Economic Growth, Michael J. Andrews, Aaron Chatterji, Josh Lerner, and Scott Stern, editors
|Energy Cost Pass-Through in U.S. Manufacturing: Estimates and Implications for Carbon Taxes|
with , : w22281
We study how changes in energy input costs for U.S. manufacturers affect the relative welfare of manufacturing producers and consumers (i.e., incidence). We also develop a methodology to estimate the incidence of input taxes which accounts for incomplete pass-through, imperfect competition, and substitution amongst inputs. For the several industries we study, 70 percent of energy price-driven changes in input costs get passed through to consumers in the short- to medium-run. The share of the welfare cost that consumers bear is 25-75 percent smaller (and the share producers bear is larger) than models featuring complete pass-through and perfect competition would suggest.
Published: Sharat Ganapati & Joseph S. Shapiro & Reed Walker, 2020. "Energy Cost Pass-Through in US Manufacturing: Estimates and Implications for Carbon Taxes," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 303-342, April.
|The Extensive Margin of Exporting Products: A Firm-level Analysis|
with , : w16641
To quantify trade frictions, we examine multi-product exporters. We build a flexible general equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market-access cost shocks. Our estimates show that additional products farther from a firm’s core competency come at higher production costs, but there are substantive economies of scope in market-access costs. Market-access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer non-tariff barriers. We evaluate a counterfactual scenario that harmonizes market-access costs across destinations and find global welfare gains similar to eliminating all current tariffs.
Published: forth at AEJ Macro