Invites you to a

Macroeconomics and Trade seminar presented by

Oscar Pavlov

(University of Tasmania) 

Superstar firms, product scope, and economic fluctuations

Wednesday 17 May 2023

2.00pm – 3.30pm

Level 6 Seminar Room (650)

A02 Social Sciences Building
Camperdown Campus

The University of Sydney NSW 2006

Zoom: 868 6023 8008

 Recent empirical research has highlighted the significant rise of market power in the last few decades primarily driven by the largest (superstar) firms. The current paper examines the role of multi-product superstar firms in economic fluctuations and their interaction with smaller mono-product competitors. Market share reallocation between superstars and smaller firms via product scope adjustments and entry and exit generates heterogenous markup dynamics. We find that the rising prevalence of superstar firms increases macroeconomic instability. The estimated model suggests that a significant portion of US fluctuations are driven by animal spirits. 

 For further information contact: Macroeconomics and Trade seminar series coordinator Dr James Graham (james.a.graham@sydney.edu.au)

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