Firms, Finance and the Macroeconomy

The research group “Firms, Finance, and the Macroeconomy” studies how the behavior and interactions of firms and financial institutions shape aggregate economic outcomes. We use new data, much of it hand-collected from historical sources, and theory-guided empirical analysis to examine how the organization of production and the financial sector have evolved over the long run and how they interact with the macroeconomy. For example, we analyze trends in corporate concentration and the rise and dynamics of superstar firms across advanced economies. In addition, we investigate how financial conditions affect innovation, investment, and growth. We study the role of banks in credit cycles, crises, and monetary policy transmission.