Flows of Goods and Technologies in the Global Economy
April 3–4, 2015
Featured Media Playlist
Friday, April 3
Kiminori Matsuyama proposed a two-country model of endogenous innovation cycles. His results suggest that adding endogenous sources of productivity fluctuations might help improve our understanding of why countries that trade more with each other have more synchronized business cycles.
Saturday, April 4
Pol Antràs discussed research on how global sourcing decisions impact firm performance, employment, and welfare. During his presentation, he solicited feedback from researchers on the proposal of a quantifiable multi-country sourcing model that provides estimates of country sourcing potential and fixed costs and studies the effects of shocks to global sourcing.
Samuel Kortum presented a general equilibrium model on product trade through random meetings, which generates predictions for imports, exports, and the share of labor in production at the firm level, as well as firm-to-firm trade and labor’s share of output at the aggregate level.
In this presentation, Andy B. Bernard examined what determines buyer-supplier connections and the consequences for firm performance. After reviewing facts about Japanese production work, the model of producers and domestic sourcing, and natural experiment testing predictions of model and effects of infrastructure, Bernard builds on the sourcing model of Antras et al (2014) and introduces a comparison of in-house production to the outsourcing margin and a continuum of locations.