There is broad international consensus that ex ante regulation is needed to address the market dominance of the very largest digital platforms and that there are benefits to having broadly coherent regulatory approaches across jurisdictions. Regulation in any one jurisdiction will have...

Does the mere presence of big banks affect macroeconomic outcomes? In this paper, we develop a theory of granularity (Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups. Using this framework, we show conditions under which...

This paper analyzes the tax haven investment behavior of multinational firms from a country that exempts foreign income from taxation. High foreign tax rates generally encourage firms to invest in tax havens, though significant costs of reallocating taxable income dampen these incentives. The...

This paper examines micro-level channels of how financial development can affect macroeconomic outcomes like the level of income and export intensity. We investigate theoretically and empirically how financial constraints affect a firm's innovation and export activities, using unique firm survey...

The European Commission is charged with implementing the Digital Markets Act (DMA) which will impose a list of 22 do and don't to Big Tech platforms in March 2024. Based on economic and legal reasoning, this paper asks how the Commission can fulfil this challenging task effectively. The paper...

This paper provides an integrated analysis of multinational companies' global production and innovation. We establish novel stylized facts using rich data on the network of production affiliates and patent activity of German multinationals. We rationalize these facts with a heterogeneous-firm...