Working Papers
Industrial Policy, Technology and Political Connections (Job Market Paper - Click here to download)
Abstract
An issue with estimating the impact of industrial support is that the firms that receive support may be politically connected, introducing omitted variable bias. Using Vietnamese data containing several proxies for political connectedness, I find that firms that receive industrial support in the form of tax holidays experience more rapid productivity growth, particularly in R&D-intensive industries, and less so among politically connected firms. These findings do not appear to be due to the presence of financing constraints.
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A multi-sector second generation Schumpeterian growth model is developed to explain the key results of the paper in an extended version: R&D, Industrial Policy and Growth (with Roberto Samaniego - Click here to download)
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Technological Determinants of Concentration in Industries: Evidence and Theory (with Roberto Samaniego)
Abstract
We examine the technological determinants of concentration in industries. We find that the rate of capital depreciation is positively related to standard measures of industry concentration. We then develop a general equilibrium theory of industry concentration where industries vary in their rate of capital depreciation. We show that in the model rapid depreciation is related to industries paying a higher gross interest rate, so that the industry can support fewer firms in equilibrium.
Work in Progress
Understanding Political Connections: An Application of Machine Learning Methods
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