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    <link>https://hdl.handle.net/10419/158028</link>
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    <pubDate>Fri, 03 Apr 2026 19:28:10 GMT</pubDate>
    <dc:date>2026-04-03T19:28:10Z</dc:date>
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      <title>Declining business dynamism in Europe: The role of shocks, market power, and technology</title>
      <link>https://hdl.handle.net/10419/285114</link>
      <description>Title: Declining business dynamism in Europe: The role of shocks, market power, and technology
Authors: Biondi, Filippo; Inferrera, Sergio; Mertens, Matthias; Miranda, Javier
Abstract: We study changes in business dynamism in Europe after 2000 using novel microaggregated data that we collected for 19 European countries. In all countries, we document a broad-based decline in job reallocation rates that concerns most economic sectors and size classes. This decline is mainly driven by dynamics within sectors, size, and age classes rather than by compositional changes. Large and mature firms experience the strongest decline in job reallocation rates. Simultaneously, the employment shares of young firms decline. Consistent with US evidence, firms' employment has become less responsive to productivity shocks. However, the dispersion of firms' productivity shocks has decreased too. To enhance our understanding of these patterns, we derive and apply a novel firmlevel framework that relates changes in firms' sales, market power, wages, and production technology to firms' responsiveness and job reallocation.</description>
      <pubDate>Mon, 01 Jan 2024 00:00:00 GMT</pubDate>
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      <dc:date>2024-01-01T00:00:00Z</dc:date>
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      <title>From labor to intermediates: Firm growth, input substitution, and monopsony</title>
      <link>https://hdl.handle.net/10419/307129</link>
      <description>Title: From labor to intermediates: Firm growth, input substitution, and monopsony
Authors: Mertens, Matthias; Schoefer, Benjamin
Abstract: We document and dissect a new stylized fact about firm growth: the shift from labor to intermediate inputs. This shift occurs in input quantities, cost and output shares, and output elasticities. We establish this fact using German firm-level data and replicate it in administrative firm data from 11 additional countries. We also document these patterns in micro-aggregated industry data for 20 European countries (and, with respect to industry cost shares, for the US). We rationalize this novel regularity within a parsimonious model featuring (i) an elasticity of substitution between intermediates and labor that exceeds unity, and (ii) an increasing shadow price of labor relative to intermediates, due to monopsony power over labor or labor adjustment costs. The shift from labor to intermediates accounts for one half to one third of the decline in the labor share in growing firms (the remainder is due to wage markdowns and markups) and rationalizes most of the labor share decline in growing industries.</description>
      <pubDate>Mon, 01 Jan 2024 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/307129</guid>
      <dc:date>2024-01-01T00:00:00Z</dc:date>
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      <title>Reassessing EU comparative advantage: The role of technology</title>
      <link>https://hdl.handle.net/10419/308809</link>
      <description>Title: Reassessing EU comparative advantage: The role of technology
Authors: Di Mauro, Filippo; Matani, Marco; Ottaviano, Gianmarco I. P.
Abstract: Based on the sufficient statistics approach developed by Huang and Ottaviano (2024), we show how the state of technology of European industries relative to the rest of the world can be empirically assessed in a way that is simple in terms of computation, parsimonious in terms of data requirements, but still comprehensive in terms of information. The lack of systematic cross-industry correlation between export specialization and technological advantage suggests that standard measu-res of revealed comparative advantage only imperfectly capture a country's tech-nological prowess due to the concurrent influences of factor prices, market size, markups, firm selection and market share reallocation.</description>
      <pubDate>Mon, 01 Jan 2024 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/308809</guid>
      <dc:date>2024-01-01T00:00:00Z</dc:date>
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      <title>Do larger firms exert more market power? Markups and markdowns along the size distribution</title>
      <link>https://hdl.handle.net/10419/276959</link>
      <description>Title: Do larger firms exert more market power? Markups and markdowns along the size distribution
Authors: Mertens, Matthias; Mottironi, Bernardo
Abstract: Several models posit a positive cross-sectional correlation between markups and firm size, which characterizes misallocation, factor shares, and gains from trade. Accounting for labor market power in markup estimation, we find instead that larger firms have lower product markups but higher wage markdowns. The negative markup-size correlation turns positive when conditioning on markdowns, suggesting interactions between product and labor market power. Our findings are robust to common criticism (e.g., price bias, non-neutral technology) and hold across 19 European countries. We discuss possible mechanisms and resulting implications, highlighting the importance of studying input and output market power in a unified framework.</description>
      <pubDate>Sun, 01 Jan 2023 00:00:00 GMT</pubDate>
      <guid isPermaLink="false">https://hdl.handle.net/10419/276959</guid>
      <dc:date>2023-01-01T00:00:00Z</dc:date>
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