Working Papers
Winners and Losers: How Corporate Tax Reforms Reshape the Firm Distribution (with Elliott Weder) [PDF]
[Presentations: 5th Sailing the Macro Workshop Ortygia, University of Naples Federico II, Erasmus University Rotterdam, 7th Annual CefES Conference, 4th XAmsterdam Macroeconomic Workshop (co-author), Theories and Methods in Macroeconomics 2025 (co-author)]
Abstract: We study how corporate tax reforms affect the distribution of resources across firms. Using a model with firm heterogeneity, motivated by a Dutch fiscal reform, we test whether a lower tax rate and reduced investment deductibility improve allocative efficiency. We find that aggregate productivity rises and misallocation falls, driven by a reallocation of capital from medium-large firms to the largest and most productive. The tax cut benefits top firms most, enabling their expansion, while the deductibility reduction disproportionately burdens medium-large firms, which invest more intensively, on average, than other firms.
Overhead Costs and Markups Across Technologies (with Agnieszka Markiewicz) [PDF]
[Presentations: Erasmus University Rotterdam, Society for Economic Dynamics 2024 (co-author), Leicester University (co-author), 11th Summer Workshop on Macro Finance (co-author)]
Abstract: This paper investigates how rising overhead costs of production affect market outcomes across sectors with different degrees of input complementarity. Using Dutch administrative firm-level data from 2006–2018, we document sectoral heterogeneity in markups’ dynamics, which we attribute to variations in ICT investment. We estimate the elasticity of substitution between capital and labor, finding stronger complementarity in sectors that invest more in ICT. A two-sector model with heterogeneous firms and oligopolistic competition shows that higher overhead costs reduce the number of firms able to break even, leading to a contraction in output, lower wages and marginal costs. In sectors with stronger complementarity, lower wages translate into larger marginal cost reductions, boosting profits and markups while reducing the labor share. The model replicates key empirical patterns, including asymmetric markups’ growth—explaining 37% of the increase in ICT sectors and 43% in non-ICT.
Work in Progress
Market Power Increase and Sectoral Heterogeneity: the Role of e-Commerce Platforms
[Winner of the Modigliani Research Grant 2025]
Firm Dynamics and Digital Workers (with Chiara Lacava)
[First draft soon! Slides available upon request]