ERC Advanced Grant · 2024
Macro Market Power and Distribution
Market power is about the distribution of economic surplus between firms, customers and workers. In this proposal, I use modern heterogeneous agents macro tools that incorporate heterogeneity in firm productivity, in preferences, and in market structure. I investigate the macroeconomic mechanisms that link market power and distributional characteristics and formulate welfare-improving policies that lead to efficiency gains and re-distribution. I propose a unifying framework of market power and distribution in general equilibrium, and use unique data to address the following 3 questions: 1. How does firm size determine monopsony power? Large firms have lower markups yet higher markdowns.…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.