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Full text release has been delayed at the author's request until August 04, 2026

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Essays on Macroeconomics with Firm Heterogeneity

Moon, Jeyoung
http://orcid.org/0009-0006-1146-3539
http://rave.ohiolink.edu/etdc/view?acc_num=osu1721122059581073

Abstract Details

2024, Doctor of Philosophy, Ohio State University, Economics.
In these essays, I uncover the nature of firm-level heterogeneity and quantify the macroeconomic effects of such heterogeneity using dynamic stochastic general equilibrium models. In the first chapter, "Propagation of Energy Shocks in an Integrated Banking Network," I study the impacts of the recent energy price shock resulting from the Russia-Ukraine war on Europe's real economy and banking sector. To this end, I develop a model of energy-importing countries with varying energy intensities, where financial intermediaries are interconnected through firms' working capital loans. Two potential sources of inefficiency are identified within this framework. First, due to the interconnectedness of banks across borders through shared customers, suboptimal equilibria may prevail, leading to excessive financial constraints on banks and a reduction in aggregate output. Second, given the energy price hikes, the initial distribution of net worth across banks may not be ideal. I show that a well-designed reallocation of net worth towards banks that supply firms with the lowest exposure to energy prices can mitigate financial distress effectively. In the second chapter, "R&D, Idiosyncratic Distortions, and Productivity," I examine the magnitude of these effects when idiosyncratic (firm-specific) distortions not only affect the allocation of resources but also influence firms' incentives to improve productivity. To this end, I develop a heterogeneous firm model where the evolution of firm-level productivity is endogenized by allowing firms to engage in risky R&D projects each period. The results show that, when distortions are tied to productivity, firm-level innovation plays a key role in generating substantial cross-country differences by amplifying the decline in aggregate productivity and consumption.
Gabriel Mihalache (Advisor)
Kyle Dempsey (Committee Member)
Aubhik Khan (Committee Member)
101 p.
Economics

Recommended Citations

Citations

  • Moon, J. (2024). Essays on Macroeconomics with Firm Heterogeneity [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1721122059581073

    APA Style (7th edition)

  • Moon, Jeyoung. Essays on Macroeconomics with Firm Heterogeneity. 2024. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1721122059581073.

    MLA Style (8th edition)

  • Moon, Jeyoung. "Essays on Macroeconomics with Firm Heterogeneity." Doctoral dissertation, Ohio State University, 2024. http://rave.ohiolink.edu/etdc/view?acc_num=osu1721122059581073

    Chicago Manual of Style (17th edition)

osu1721122059581073
© 2024, all rights reserved.
This open access ETD is published by The Ohio State University and OhioLINK.