Monopsony power makes productive firms decide to stay small, hurting aggregate productivity. More strongly size-dependent wages in East Germany explain a third of the difference to the West.
New paper by @BachmannRudi, @christianbaye13, Stüber, and Wellschmied
We construct a new measure of input sourcing risk based on the volatility of ocean shipping times associated with weather shocks and show that firms diversify this weather risk.
