Abstract This paper documents a link between bank concentration and markups in nonfinancial sectors. We exploit concentration-increasing mergers variation banks’ market shares across industries show that higher credit is associated with high-market-share lenders charge lower loan rates. argue this due to the greater incidence of competing firms sharing common induce less aggressive product beha...

How can features of the markets for audit and nonaudit services (NAS) affect an firm's incentives to invest in quality, average social welfare? We address these questions a model focusing on competition both NAS markets. show that, when demand are positively correlated, prohibiting auditors from providing clients leads higher investments but decrease quality if marginal switch lower auditors. T...

This article estimates the effect of labor-market concentration on labor compensation across US private sector since 2000. The authors distinguish between in local markets and product while guarding against bias from confounded product-market concentration. analysis extends beyond wages to rates employment-based health insurance coverage. Reported results suggest negative effects compensation. ...

We identify a new channel through which monetary policy affects productivity at business cycle frequencies. An unexpected easing initially reduces average labor productivity, then overshoots its pre-shock level. At the same time, firm entry rate rises in response to shock and undershoots. Market concentration matters for transmission mechanism. In low concentrated markets, has negligible effect...