Kerem A. Cosar
University of Virginia
NBER Working Papers and Publications
|September 2015||What Drives Home Market Advantage?|
with Paul L. E. Grieco, Shengyu Li, Felix Tintelnot: w21583
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a preference for home brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks. Furthermore, we also find that consumers favor domestically producing brands regardless of the historical brand origin.
|December 2013||Internal Geography, International Trade, and Regional Specialization|
with Pablo D. Fajgelbaum: w19697
We introduce an internal geography to the canonical model of international trade driven by comparative advantages to study the regional effects of external economic integration. The model features a dual-economy structure, in which locations near international gates specialize in export-oriented sectors while more distant locations do not trade with the rest of the world. The theory rationalizes patterns of specialization, employment, and relative incomes observed in developing countries that opened up to trade. We find regional specialization patterns consistent with the model in industry-level data from Chinese prefectures.
Published: Internal Geography, International Trade, and Regional Specialization A. Kerem Coşar Pablo D. Fajgelbaum AMERICAN ECONOMIC JOURNAL: MICROECONOMICS VOL. 8, NO. 1, FEBRUARY 2016 (pp. 24-56) citation courtesy of
|September 2010||Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy|
with Nezih Guner, James Tybout: w16326
This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The fitted model captures key features of Colombian firm dynamics and labor market outcomes, as well changes in these features during the past 25 years. Counterfactual experiments imply that integration with global product markets has increased both average income and job turnover in Colombia. In contrast, the experiments find little role for this country's labor market reforms in driving these variables. The results speak more generally to the effects of globalization on labor markets in Latin America an...
Published: A. Kerem Co?ar & Nezih Guner & James Tybout, 2016. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," American Economic Review, American Economic Association, vol. 106(3), pages 625-63, March. citation courtesy of