Search

Sanctions against Russia in 2014 had an effect, but their potential was far from being fully exploited

Sanctions against Russia following the annexation of Crimea reduced consumption in Russia by 1.4 percent - Simulations show that the potential for sanctions could have been higher - Involvement of emerging economies would have increased sanction pressure - Sanctions caused greater losses for small economies in the proximity of Russia than for large economies - Burden-sharing funds could reduce asymmetries With ...

Targeting Viewers’ Heterogeneous Ad Aversion: Evidence from a Two-Sided Market

This paper studies the role of viewers’ heterogeneous ad aversion on media content demand and advertisers’ willingness to pay. High-frequency individual-level data on broadcast media content allows us to track viewers’ minute-by-minute choices within the set of available alternatives. We first illustrate the potential selection biases that arise when using aggregated market-level data to estimate...

Contracts in Crisis: The War in Ukraine and Long-Term Contracts in Energy Markets

We examine the impact of the war in Ukraine on long-term contracts in energy markets. We find that traded contract volumes fall by 65 percent in the first months of the war. A collapse in bilateral trading contributes most to this decline. To protect themselves from price shocks, firms increasingly turned to long-term contracts already before the war. In sum, our results show that the market continued ...

What is the “Right” Geographic Market Definition?

This paper examines the “right” geographic definition of relevant markets by analysing how excise tax pass-through varies with local competition in the retail gasoline market of Athens, Greece. Using a natural experiment from three unanticipated and exogenous fuel tax hikes in 2010 and detailed station-level price data, we show that average pass-through is almost complete and invariant to the...

Brown Bag Seminar Industrial Economics

Merger Remedies and Bargaining Power in the Coffee Market

This paper analyzes a merger of large manufacturers with divestiture in the French coffee market. In contrast to previous approaches used to study the effects of upstream divestitures on prices and welfare, we model the vertical market structure. First, our results show that the standard policy recommendation to require divestiture to small recipient firms may not hold when asymmetric bargaining power ...

The Impact of Governmental Regulations on Housing Market: Findings of a Meta-Study of Empirical Literature

Housing markets are affected by a large variety of factors. Among them, governmental regulations play an important role. Besides desired effects, all these policies exert a number of side effects, some of which can even offset the desired effects. In addition, different policies can cancel out each other. Therefore, it is important to be aware of the effects of individual policies and the composite ...

The Effects of Trade on CO2 Firm-Level Emission Intensity: Evidence from German Microdata

This paper examines how firms' CO2 emission intensity (CEI) responds to trade shocks. Changes in market conditions, such as trade shocks, are believed to drive specialization toward core products, foster innovation, improve productivity, and influence abatement choices. I develop a unified framework that decomposes within-firm changes in CEI into within- and between-product components and...

Trade Barriers and Market Power: Evidence from Argentina’s Discretionary Import Restrictions

Countries are increasingly turning to non-tariff barriers that are hard to measure and often illegal under WTO rules. What are the impacts of these policies, and what do they reveal about market power in international trade? We study a comprehensive system of discretionary import licenses imposed by Argentina, where we observe the universe of transaction-level requests and approval decisions...

Broken Ties: Impact of Venezuela’s Suspension from Mercosur on Trade Networks

This paper examines the impact of sanctions on the structure of regional supply chains, focusing on Venezuela's suspension from the Mercosur trade bloc in 2016. To analyze this, we exploit a uniquely comprehensive database encompassing firm-to-firm transactions across several Latin American economies from 2014 to 2019. Our findings reveal how buyer-supplier linkages adapted to the shock along...