Friday Seminar - "Data and Mark-ups: A Macro-Finance Perspective" - Laura Veldkamp (Columbia University)
Laura Veldkamp, Professor of Finance at Columbia University, will present her research at SSE main building (Room A720) on Friday, September 1 at 10:30 CET.
Starttid:
2023-09-01 at 10:30
Sluttid:
2023-09-01 at 11:45
Plats:
Room A720, SSE main building, entrance via Bertil Ohlins Gata 4
Data and Mark-ups: A Macro-Finance Perspective
Abstract: How can we measure the extent to which data-intensive firms are using their market power? Economists typically look to markups as evidence of market power. Using a simple model with firms that price risk in their capital allocation and production decisions, we highlight the competing forces that make markups an unreliable measure of data-derived market power. Instead, we show how markups measured at different levels of aggregation reflect data and distinguish data from other intangible investments. These findings both reconcile seemingly contradictory empirical markup evidence and guide us to new ways of measuring data and its effects on markets.