M&A, Market Power and Macroeconomic Growth
Abstract: This paper empirically examines how mergers and acquisitions (M&A) and market power accompany permanent macroeconomic productivity increases. A structural VAR shows that technology shocks generate merger waves but do not increase aggregate markups. About 35% of the forecast error variance in M&A is associated with technology shocks, suggesting that productivity growth is a substantial part of M&A. The findings suggest that restricting M&A might have unintended negative consequences for long-run productivity growth.
Work In Progress
The Dynamic Effects of Corporate Tax Policy in Oligopolies (with Thomas Gresik)
Product differentiation with elastic demand and unit-specific transportation cost (with Kali Rath)