arXiv subjects

Davide Luparello

Publications and source records attributed to Davide Luparello.

5 recordsLinked to original sources

arXiv2026

Productivity Shocks and Input Misallocation: A Decomposition

This paper investigates how productivity dispersion relates to input misallocation in European manufacturing. The model features staggered productivity shocks that create wedges between anticipated and realized productivity for any production input. Using European firm-level data from 2001-2017, I show that, under the maintained model, shocks realized after inputs are committed are the largest contributor to marginal revenue product dispersion for every input, accounting for 75% of the variance for materials, 37% for labor, and 18% for capital. These results are consistent with input misallocation in European manufacturing reflecting post-commitment productivity shocks more than persistent heterogeneity across firms.

econ.GN↗

arXiv2025

Do Temporary Workers Face Higher Wage Markdowns? Evidence from India's Automotive Sector

Contract workers constitute half of India's automotive employment but earn substantially less than permanent workers. Using ASI data (2002-2019), I develop an estimator of labor supply and demand schedules to explain this wage premium. The model features worker-type-specific discrete choice labor supply, nested CES production, Nash-Bertrand competition for contract workers, and plant-union bargaining for permanent workers. I find the premium stems entirely from higher productivity rather than differential monopsony power. While a lump-sum transfer offsetting wage markdowns would increase welfare by 14% for permanent and 12% for contract workers, it would simultaneously increase the premium by 14%, exacerbating inequality.

econ.GN↗

arXiv2025

Unveiling Plant-Product Productivity via First-Order Conditions: Robust Replication of Orr (2022)

We assess the replicability of Orr (2022)'s method for estimating within-plant productivity across product lines, which combines demand estimation with cost minimization. The original study uses input price shocks in other output markets as instrumental variables, with exclusion restrictions based on downstream purchase shares. Reconstructing the original dataset of Indian machinery producers from 2000-2007, we reproduce the main productivity patterns and demonstrate their robustness to variations in the exclusion threshold. The main results remain robust in extended samples (2010-2019, 2000-2019) when calibrating demand parameters to Orr (2022)'s 2000-2007 estimates, as estimation on these extended periods yields inadmissible demand systems.

econ.GN↗

arXiv2025

Two Level Nested and Sequential Logit

This technical note provides comprehensive derivations of fundamental equations in two-level nested and sequential logit models for analyzing hierarchical choice structures. We present derivations of the Berry (1994) inversion formula, nested inclusive values computation, and multi-level market share equations, complementing existing literature. While conceptually distinct, nested and sequential logit models share mathematical similarities and, under specific distributional assumptions, yield identical inversion formulas-offering valuable analytical insights. These notes serve as a practical reference for researchers implementing multi-level discrete choice models in empirical applications, particularly in industrial organization and demand estimation contexts, and complement Mansley et al. (2019).

econ.EM↗

arXiv2024

Factor-Biased Efficiency Gains from Exporting: Evidence from Colombia

New exporters adopt new technologies, which may reorganize production rather than uniformly increase output, so efficiency gains can vary across inputs. We examine such gains across worker types in Colombian manufacturing, 1981-1991. Developing and applying a model of production and export entry, we find export entry raises the efficiency of unskilled labor by 9.4% annually. We detect no such change for skilled-labor and neutral efficiency. These factor-biased effects imply a 2% annualized rise in total factor productivity. We estimate that the two worker types are complements, so exporters produce more with relatively less unskilled labor, raising skill intensity.

econ.GN↗