CSH Talk by Andreas Moxnes: “Growing Together and Apart: Scale Economies and Specialization”

Andreas Moxnes from the University of Oslo will present a talk on Wednesday, May 31, 2023, at 3 PM at the Salon.

Title: Growing Together and Apart: Scale Economies and Specialization

Abstract: This paper analyzes the role of the 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, including 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 moments. The estimated model parameters suggest that specialization along the supply chain gives rise to substantial scale economies.

Bio: Andreas Moxnes is a Professor of Economics at the University of Oslo. Among Moxnes’ primary research interests are the interaction between globalization and the behavior of the firm, production networks as well as reallocations in product markets and productivity growth. Prior to joining the University of Oslo, he was an Assistant Professor at Dartmouth College.