Tag Archives: Profits

Who Benefits when the Government Pays More? Pass-Through in the Medicare Advantage Program

From Mark Duggan, Amanda Starc, Boris Vabson: Governments contract with private firms to provide a wide range of services. While a large body of previous work has estimated the effects of that contracting, surprisingly little has investigated how those effects vary … Continue reading

Posted in Uncategorized | Tagged , , , , , , | Leave a comment

America risks becoming a Downton Abbey Economy

From Larry Summers: Inequality has emerged as a major issue in the US and beyond. A generation ago it could reasonably have been asserted that the overall growth rate of the economy was the main influence on the growth in … Continue reading

Posted in Uncategorized | Tagged , , , , , | 1 Comment

Private Equity, Productivity, and Inequality

Sorry for the light posting – I have been traveling for job interviews. Here’s an interesting paper that I heard about recently. It shows that  private equity buyouts bring productivity improvements and lower payrolls on average. Here is the full … Continue reading

Posted in Uncategorized | Tagged , , , | Leave a comment

3 Links on Corporate Profits

1. Jim Tankersley writes on Boeing and state corporate tax breaks and profiles my job market paper with Juan Carlos Suárez Serrato on the welfare effects of cutting corporate taxes in an open economy 2. Enrico Moretti on the tech boom and … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , , , , , | Leave a comment

Are Markups Increasing?

Given the recent discussion about trends in corporate profits and market power [see a great FT article by Robin Harding, this op-ed from Paul Krugman, this post from Tyler Cowen, and these two posts of mine], I thought I’d share this figure from … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , , | Leave a comment

A Corporate Tax Proposal from Larry Summers

From Larry Summers: The US should eliminate the distinction between repatriated and unrepatriated foreign corporate profits for US companies and tax all foreign income (after allowance for taxes paid to other governments) at a fixed rate well below the current … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , | Leave a comment

Great Questions from Paul Krugman

Why have profits been so strong in a weak economy? Why, with profits so high, don’t businesses find reason to invest more (equipment investment is actually fairly strong, but construction remains weak). (For the seriously wonkish, why do average and marginal … Continue reading

Posted in Uncategorized | Tagged , , , , | 1 Comment

How Much Do Wages Go Up When Profit Increases by a Dollar?

Given the interest in the rise of robots, shrinking labor shares and the owners of capital, I thought I’d highlight a Van Reenen paper that David Card suggested we read on the link between firm profitability and wages. It looks at at … Continue reading

Posted in Uncategorized | Tagged , , , , , , , | 8 Comments