Firms in Product Space: Adoption, Growth and Competition, joint with Luca Macedoni and Vlad Tyazhelnikov

As part of the Vilfredo Pareto Research Seminar series, the International Economics Department at the Geneva Graduate Institute is pleased to invite you to a public talk given by John Morrow, King's College London. We are pleased to host this talk in collaboration with the Geneva Trade and Development Workshop.

Abstract: 

Which products are potentially produced together? Can any firm eventually supply any new demand? Using multi-product production patterns within and across firms, we recover a continuous cost-based distance between products and firms. Product distance implies a product adoption path, with each rank of distance decreasing adoption frequency. When export demand for unproduced products induces domestic adoption, closer firms supply them. Counterfactual production costs imply measures of Revenue Potential and Competitive Pressure. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 20-30%.