Job market candidate
Tel. +34 93 542 2687
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
International Economics. Macroeconomics.
"Endogenous Production Networks and Gains from Trade" (Job Market Paper)
I develop a quantitative trade model with endogenous production networks, namely the collection of supplier-customer relationships among firms. In the model, firms form linkages with each other, balancing the tradeoff between extra revenue brought in by downstream connections and fixed costs required to establish such connections. The structure of equilibrium production networks depends both on variable trade costs and linkage fixed costs. In particular, trade integration can lead to structural transformations of global production networks, which in turn bring about technological changes on both the firm and the aggregate level. These adjustments on the production side constitute a new channel through which trade liberalization can raise welfare. I calibrate the model to trade data between the United States and the rest of the world (ROW) over 2000-2014. The model is able to replicate the actual time trend of the value added share in gross trade, as well as several cross-sectional patterns observed in the US-ROW input-output networks. Applying the model, I quantify the welfare gains of moving from autarky to the 2014 equilibrium to be 15.5%, with a quarter of these gains arising solely from the rearrangement of linkages among firms.
“Urban Networks: Connecting Markets, People and Ideas” with Edward Glaeser and Giacomo Ponzetto Papers in Regional Science, 95 (1), 2016, 17–59.
Should China build mega-cities or a network of linked middle-sized metropolises? Can Europe’s mid-sized cities compete with global agglomeration by forging stronger inter-urban links? This paper examines these questions within a model of recombinant growth and endogenous local amenities. Three primary factors determine the trade-off between networks and big cities: local returns to scale in innovation, the elasticity of housing supply, and the importance of local amenities. Even if there are global increasing returns, the returns to local scale in innovation may be decreasing, and that makes networks more appealing than megacities. Inelastic housing supply makes it harder to supply more space in dense confines, which perhaps explains why networks are more popular in regulated Europe than in the American Sunbelt. Larger cities can dominate networks because of amenities, as long as the benefits of scale overwhelm the downsides of density. In our framework, the skilled are more likely to prefer mega-cities than the less skilled, and the long-run benefits of either mega-cities or networks may be quite different from the short-run benefits.
Research Papers in Progress
“Economic Growth with Endogenous Production Networks”
“A Theory of Trade Credit”