Essays in macroeconomics

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This dissertation in macroeconomics comprises three chapters. In the first chapter, ``The Macro Impact of Short-Termism, '' I study a pervasive tradeoff between the short-term and long-term performance of firms. In the United States, long-term investment, like R& D, must be expensed from short-term earnings figures. Therefore benchmarks for short-term performance, such as analyst earnings forecasts, may cause managers to underinvest in the long term. The second chapter, ``Alternative Methods for Solving Heterogeneous Firm Models, '' compares four algorithms for the solution of a canonical neoclassical heterogeneous firms model with fixed capital adjustment costs and firm-level productivity shocks. Trade between low-cost, low-wage countries like China and the developed world has increased substantially in recent decades. Recent empirical research suggests that firms exposed to this liberalization engage in more innovation. In a third chapter entitled ``Trapped Factors and China's Impact on Global Growth, '' which is joint work with Nick Bloom, Paul M. Romer, and John Van Reenen, we build a product-cycle model of growth and trade which seeks to both rationalize this micro-level response of firm innovation to low-cost competition as well as quantify the dynamic or growth based gains from trade liberalization.


Type of resource text
Form electronic; electronic resource; remote
Extent 1 online resource.
Publication date 2015
Issuance monographic
Language English


Associated with Terry, Stephen J
Associated with Stanford University, Department of Economics.
Primary advisor Bloom, Nick, 1973-
Thesis advisor Bloom, Nick, 1973-
Thesis advisor Hall, Robert
Thesis advisor Klenow, Peter J
Thesis advisor Piazzesi, Monika
Advisor Hall, Robert
Advisor Klenow, Peter J
Advisor Piazzesi, Monika


Genre Theses

Bibliographic information

Statement of responsibility Stephen J. Terry.
Note Submitted to the Department of Economics.
Thesis Thesis (Ph.D.)--Stanford University, 2015.
Location electronic resource

Access conditions

© 2015 by Stephen James Terry

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