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  <title>EconStor Collection:</title>
  <link rel="alternate" href="https://hdl.handle.net/10419/64622" />
  <subtitle />
  <id>https://hdl.handle.net/10419/64622</id>
  <updated>2026-04-28T11:21:01Z</updated>
  <dc:date>2026-04-28T11:21:01Z</dc:date>
  <entry>
    <title>Foundational processes and growth</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/315930" />
    <author>
      <name>Tham, Wing Wah</name>
    </author>
    <author>
      <name>Baslandze, Salomé</name>
    </author>
    <author>
      <name>Sojli, Elvira</name>
    </author>
    <author>
      <name>Liu, Leo</name>
    </author>
    <id>https://hdl.handle.net/10419/315930</id>
    <updated>2025-05-01T01:40:15Z</updated>
    <published>2025-01-01T00:00:00Z</published>
    <summary type="text">Title: Foundational processes and growth
Authors: Tham, Wing Wah; Baslandze, Salomé; Sojli, Elvira; Liu, Leo
Abstract: This paper studies the interaction between process and product innovations and their distinct role in firm growth dynamics. We differentiate empirically and theoretically two types of process innovations: foundational processes that advance production technology and cost-reducing processes that enhance existing production efficiency. We develop an innovation model of product varieties with quality heterogeneity to illustrate how these innovations affect firm growth differently and highlight how process innovation induces product innovation. By analyzing millions of patent texts from 1900 to 2020, we classify innovations into product, cost-reducing process, and foundational process innovations. We find that foundational processes lead to sustained firm growth, especially through their effect on subsequent product creation. R&amp;D-intensive firms focused on "deep-tech" innovations have an advantage in creating foundational processes, resulting in superior product quality. Using patents linked to FDA-approved drugs, we show that firms with a comparative advantage in creating foundational processes, due to greater knowledge and technological stock, tend to produce higher-value products.</summary>
    <dc:date>2025-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>Screen more, sell later: Screening and dynamic signaling in the mortgage market</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/315966" />
    <author>
      <name>Adelino, Manuel</name>
    </author>
    <author>
      <name>Wei, Bin</name>
    </author>
    <author>
      <name>Zhao, Feng</name>
    </author>
    <id>https://hdl.handle.net/10419/315966</id>
    <updated>2025-05-01T01:40:13Z</updated>
    <published>2025-01-01T00:00:00Z</published>
    <summary type="text">Title: Screen more, sell later: Screening and dynamic signaling in the mortgage market
Authors: Adelino, Manuel; Wei, Bin; Zhao, Feng
Abstract: In dynamic models of asset markets with asymmetric information and endogenous screening, the anticipation of signaling through delayed sales incentivizes originators to exert greater effort ex ante. A central prediction in those models is a positive relationship between screening effort and the delay of sale. We test this theoretical prediction using the mortgage market as a laboratory, with processing time serving as a measure of screening effort. In line with the theory, mortgage processing time and the delay of sale after origination are strongly positively related in the data. Both processing time and delay of sale are negatively related to conditional mortgage default, even though mortgages with higher ex ante credit risk are processed slower. This highlights the contrast between observable and unobservable risk and indicates that more screening effort leads to unobservably higher-quality loans that are also sold with a longer delay.</summary>
    <dc:date>2025-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>Economic diversity and the resilience of cities</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/315952" />
    <author>
      <name>de Soyres, François</name>
    </author>
    <author>
      <name>Fuchs, Simon</name>
    </author>
    <author>
      <name>Kondo, Illenin O.</name>
    </author>
    <author>
      <name>Maghin, Helene</name>
    </author>
    <id>https://hdl.handle.net/10419/315952</id>
    <updated>2025-05-01T01:40:17Z</updated>
    <published>2025-01-01T00:00:00Z</published>
    <summary type="text">Title: Economic diversity and the resilience of cities
Authors: de Soyres, François; Fuchs, Simon; Kondo, Illenin O.; Maghin, Helene
Abstract: We show how local worker flow adjustment margins yield a theory-consistent sufficient statistic approximating the welfare effects of local shocks. Furthermore, we isolate a city's insurance value as this approximation's second-order term. Leveraging rich labor flows data across occupations, industries, and cities in France, we estimate spatial and nonspatial flows responses to local labor demand shocks. Less economically diverse French cities experience deeper contractions in gross outflows following negative shocks. In contrast, more economic concentration begets a modestly larger increase in gross worker flows following positive shocks. Altogether, we uncover sizable welfare insurance gains from local economic diversity.</summary>
    <dc:date>2025-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>Bank financing of global supply chains</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/324799" />
    <author>
      <name>Alfaro, Laura</name>
    </author>
    <author>
      <name>Brussevich, Mariya</name>
    </author>
    <author>
      <name>Minoiu, Camelia</name>
    </author>
    <author>
      <name>Presbitero, Andrea</name>
    </author>
    <id>https://hdl.handle.net/10419/324799</id>
    <updated>2025-09-04T01:37:21Z</updated>
    <published>2025-01-01T00:00:00Z</published>
    <summary type="text">Title: Bank financing of global supply chains
Authors: Alfaro, Laura; Brussevich, Mariya; Minoiu, Camelia; Presbitero, Andrea
Abstract: Finding new international suppliers is costly, so most importers source inputs from a single country. We examine the role of banks in mitigating trade search costs during the 2018-19 US-China trade tensions. We match data on shipments to US ports with the US credit register to analyze trade and bank credit relationships at the bank-firm level. We show that importers of tariff-hit products from China were more likely to exit relationships with Chinese suppliers and find new suppliers in other Asian countries. To finance their geographic diversification, tariff-hit firms increased credit demand, drawing on bank credit lines and taking out loans at higher rates. Banks offering specialized trade finance services to Asian markets eased both financial and information frictions. Tariff-hit firms with specialized banks borrowed at lower rates and were 15 percentage points more likely and three months faster to establish new supplier relationships than firms with other banks. We estimate the cost of searching for suppliers at $1.9 million (or 5 percent of annual sales revenue) for the average US importer.</summary>
    <dc:date>2025-01-01T00:00:00Z</dc:date>
  </entry>
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