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Joint ESRI/UCD Research Seminar: "The Origins of Firm Heterogeneity"

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The Economic and Social Research Institute

Whitaker Square

Sir John Rogerson's Quay

D02 K138 Dublin

Ireland

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Professor Kalina Manova, Department of Economics, University of Oxford, will deliver a seminar titled The Origins of Firm Heterogeneity: A Production Network Approach.

She will present a paper which quantifies the origins of firm size heterogeneity when firms are interconnected in a production network. The research documents new stylized facts about the universe of buyer-supplier relationships among all firms in Belgium during 2002-2014. These facts motivate a model in which firms buy inputs from upstream suppliers and sell to downstream buyers and final demand.

Firms can be large not only because they have high production capability (i.e. productivity or product quality), but also because they interact with more, better and larger buyers and suppliers, and because they are better matched to their buyers and suppliers. The model delivers an exact decomposition of firm size into upstream and downstream margins with firm, buyer/supplier and match components.

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The Economic and Social Research Institute

Whitaker Square

Sir John Rogerson's Quay

D02 K138 Dublin

Ireland

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