Glad to see my work with Matthias Mertens (@mitsloan.bsky.social‬) forthcoming at Econ Letters! A short thread for anyone studying market power. TL;DR: In our data, larger firms exhibit *lower* markups - but much higher markdowns. www.sciencedirect.com/science/arti...

The best cross-country data-building effort is no doubt CompNet at IW Halle. For this reason, there are several interesting cross-country papers coming from the team, including Matthias Mertens' and @bmottironi.bsky.social's paper on cost markups and wage markdowns. 1/2

Alright, I've got zero followers right now—let's see if this thread on my JMP can escape the depths of the internet. TL;DR: Labour market power leads to large productivity losses. Keep reading if you’re interested in misallocation, tech diffusion, and regional disparities (you should be!).