We introduce a new measure of competition: the elasticity of a firm's profits with respect to its cost level. A higher …

investigate how different types of fiscal policy affect profits and, as a result, investment. We find a sizeable negative effect … negative effects on profits, but, interestingly, the effects of government spending on investment are larger than the effect of …

cost margins, industry wide profits or concentration. All parameterizations of competition, considered here, have two … features in common. First, the reallocation effect: a rise in competition raises the profits of a firm relative to the profits … of a less efficient firm. Second, a rise in competition reduces the profits of the least efficient firm active in the …

framework jointly predicts procyclical product variety and procyclical profits even for preference specifications that imply …

Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday … language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare … distinctions that common usage of the term exploitation allows. I resolve this conflict by introducing a welfare function with …