Department of Economics
University of Copenhagen
Øster Farimagsgade 5, building 26
DK-1353 Copenhagen K.
Tel: +45 3532 3065
Institutional Affiliation: Copenhagen Business School
Information about this author at RePEc
NBER Working Papers and Publications
|May 2019||Equilibrium Trade in Automobile Markets|
with Kenneth Gillingham, Fedor Iskhakov, Anders Munk-Nielsen, John P. Rust: w25840
We introduce a computationally tractable dynamic equilibrium model of the automobile market where new and used cars of multiple types (e.g. makes/models) are traded by heterogeneous consumers. Prices and quantities are determined endogenously to equate supply and demand for all car types and vintages, along with the ages at which cars are scrapped. The model allows for transactions costs, taxes, flexible specifications of car characteristics, consumer preferences, and heterogeneity. We apply the model to two examples: a revenue-neutral replacement of the new vehicle registration tax with a higher fuel tax and a hypothetical “merger to monopoly” in an oligopolistic new car market. We show substantial gains in consumer welfare from the tax policy change, as well as important effects on gove...
|March 2007||Foreign Firms, Domestic Wages|
with Nikolaj Malchow-Møller, James R. Markusen: w13001
Foreign-owned firms are often hypothesized to generate productivity "spillovers" to the host country, but both theoretical micro-foundations and empirical evidence for this are limited. We develop a heterogeneous-firm model in which ex-ante identical workers learn from their employers in proportion to the firm?s productivity. Foreign-owned firms have, on average, higher productivity in equilibrium due to entry costs, which means that low-productivity foreign firms cannot enter. Foreign firms have higher wage growth and, with some exceptions, pay higher average wages, but not when compared to similarly large domestic firms. The empirical implications of the model are tested on matched employer-employee data from Denmark. Consistent with the theory, we find considerable evidence of higher...
Published: Nikolaj Malchow-MÃ¸ller & James R. Markusen & Bertel Schjerning, 2013. "Foreign Firms, Domestic Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(2), pages 292-325, 04. citation courtesy of