Job market candidate
Tel. +34 93 542 1191
Available for Interviews at :
Simposio de la Asociación Española de Economía (SAEe), December 14-16, Barcelona, Spain
Allied Social Science Associations (ASSA), January 5-7, Philadelphia, US
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Macroeconomic Theory, Financial Macroeconomics, Firm and Industry Dynamics.
"Asset Bubbles and Product Market Competition" (Job Market Paper)
This paper studies the effects of rational bubbles in an economy characterized by imperfect competition in product markets. It provides two main insights. The first is that imperfect competition relaxes the conditions for the existence of rational bubbles. When they have market power, firms restrict output and investment to enjoy supernormal profits. This depresses the interest rate, making rational bubbles possible even when capital accumulation is dynamically efficient. The second is that by providing a production or entry subsidy, asset bubbles may have a pro-competitive effect and force firms to expand and cut profit margins. However, once they get too large they can lead to overinvestment and sustain corporate losses. I use anecdotal evidence from the British railway mania of the 1840s and the dotcom bubble of the late 1990s to support the model's hypotheses and predictions .
“The Real Side of Stock Market Exuberance”.
There is a widespread perception that stock prices experience fluctuations that cannot be accounted for by fundamentals. Yet, it is not well known from an empirical standpoint how such fluctuations are related to industry characteristics or how they affect particular economic outcomes, such as firm-level productivity. This paper provides a characterization of stock market overvaluation at the industry level and documents new stylized facts, namely (i) non-fundamental stock price fluctuations appear to be more volatile in industries with higher profit margins or higher R&D intensity (ii) compared to incumbents, young firms exhibit faster capital accumulation in response to industry overvaluation, but lower TFP growth (iii) in periods of high overvaluation, stock market entrants tend to be less productive and issue more equity relative to future investment levels. These findings can help us assess the validity of recent models and offer hints for future research.
Research in Progress
"Firm Distribution, Market Power and Business Dynamism: Evidence from Spain"(with Enrique Moral-Benito)
"Market Size, Technology Adoption and Competition"