Growing Together and Apart: Scale Economies and Specialization
Eggers Hall, 341
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Moynihan Institute, and the program for Trade, Development, and Political Economy is proud to host Mr. Chong Xiang, professor of economics at Purdue University.
This paper analyzes the role of division of labor along the supply chain for generating scale economies and productivity growth. We construct a novel data set of firm-to-firm links which includes information on the occupation structure of buyers and suppliers. Using an instrumental variable approach, we find that firms hit by positive demand shocks raise output and labor productivity, and that their occupation structure diverges relative to their suppliers. We build a parsimonious model of heterogeneous firms and tasks, and estimate the model by simulated method of moments. The estimated model parameters suggest that specialization along the supply chain gives rise to substantial scale economies.
Category
Social Science and Public Policy
Type
Talks
Region
Campus
Open to
Public
Organizer
MAX-Moynihan Institute of Global Affairs
Accessibility
Contact Georgios Tsaoussis Carter to request accommodations
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We’re Turning 100!
To mark our centennial in the fall of 2024, the Maxwell School will hold special events and engagement opportunities to celebrate the many ways—across disciplines and borders—our community ever strives to, as the Oath says, “transmit this city not only not less, but greater, better and more beautiful than it was transmitted to us.”
Throughout the year leading up to the centennial, engagement opportunities will be held for our diverse, highly accomplished community that now boasts more than 38,500 alumni across the globe.