Mini course: The Production Approach to Market Power - is postponed to 2021!
2020-05-25 at 13:00
End time: 2020-05-26 at 12:00
Location: Aulan, Sveavagen 65
Please note that the mini course is postponed until May 2021 because of the Covid-19 situation. Exact date to be announced late fall of 2020.
There will be two lectures in the mini-course given on Monday May 25 (1.15-4.15 pm) and Tuesday May 26 (9.00-12 am) 2020 at the Stockholm School of Economics.
Many observers point to weakening competition and increasing market power across a broad set of markets. The topic is clearly central to the field of industrial organization and antitrust but has increasingly become important for questions in corporate finance, macroeconomics and international trade. How to measure market power is clearly fundamental to such debates and the mini course will cover the estimation of market power.
It is oriented towards empirical work, but the empirical work covered will typically have a close tie to a theoretical model. The course will involve presentation and discussion of papers that should be read in advance. The first session introduces the empirical framework of De Loecker and Warzynski (AER, 2012), and their extensions, to measure markups using production data. This approach requires insights in production function estimation, and the essential ingredients will be discussed. The second session discusses the application of the production approach to recent questions of increasing concentration and market power. The link between market power and misallocation is presented.
Jan De Loecker is Professor of Economics at the KU Leuven and has previously held positions at NYU and Princeton. He specializes in the areas of industrial organization, international economics and development economics. His research is centered around measuring, and identifying the drivers of firm performance. In particular, he has put forward empirical frameworks to estimate productivity, marginal costs and markups, using micro-level production data. A recent prominent example is his paper (joint with J. Eeckhout and G. Unger) “The rise of market power and the macroeconomic implications” that is forthcoming at QJE. He has published in leading journals, such as the American Economic Review, Econometrica, Journal of Political Economy and Quarterly Journal of Economics.
The course is open to PhD students or PhD’s in economics and finance – subject to approval. The course is free of charge. Register with Rasa Salkauskaite (firstname.lastname@example.org) before May 8 and please mention any dietary restrictions: there will be a dinner (free!) for course participants on May 25 and a simple lunch on May 26.
There will be no exam and participation does not give any credits. The course is made possible by a grant from the Swedish Competition Authority.
Richard Friberg, Stockholm School of Economics