The ready-mix concrete industry is a fascinating laboratory for the study of industry dynamics. Concrete plants produce a single homogeneous product with technology and equipment that has changed little over the last 50 years. Building a plant entails substantial sunk costs since the machinery used to produce ready-mix cannot easily...
This thesis comprises three essays addressing theory and evidence on the household response to tax-favored saving incentive schemes, with a particular emphasis on household risk taking. The US tax code and related regulatory institutions offer a variety of incentives to encourage US households to save and participate in risky investment...
Social networks play an important role in the labor market. Various surveys document that 30-60% of jobs are found through friends or relatives. To better understand how networks operate in the labor market, I examine how networks that were formed involuntarily as a result of the American Civil War and...
In this dissertation we analyze, using standard formal imperfect competition models from the literature, two central public policy issues in the deregulated wholesale electricity markets. The first issue is the regulatory rules around generator ownership of transmission companies or transmission rights in general. The second issue we look into is...
Should the government subsidize entry to promote competition? In theory, free entry does not guarantee the socially optimum number of entrants. In differentiated product markets, free entry can result either in excessive or insufficient entry. Quantifying this inefficiency and identifying the optimal subsidy level require an empirical framework that combines...
This dissertation comprises three essays on industrial organization. In Chapter 1 I study the productivity effects of corporate diversification, where productivity is understood as a measure of sales per input at the productive unit level, and diversified firms are defined as firms that operate in different industries. I develop and...
We argue that a country’s level of wealth inequality can be viewed as a reflection of the quality of its housing rental market. Using the ECB’s Household Finance and Consump- tion Survey (HFCS), we document that the aggregate homeownership rate and various measures of wealth inequality are negatively correlated across...
The first chapter of this dissertation develops a two-stage inference method for structural parameters in the linear instrumental variables model. In the first stage, a new statistic is used to detect whether the correlation between the structural error and the reduced form error is small. In the second stage, a...