Seminar: Eduardo Morales (Princeton)

Currently on the faculty of the Department of Economics and the School of Public and International Affairs at Princeton University, Dr. Eduardo Morales has previously been an assistant professor at Columbia University. He holds bachelor’s degrees in Economics and in Law from Universidad Carlos III de Madrid and a PhD in Economics from Harvard University. In 2020, Eduardo was granted the "Premio Fundación Banco Sabadell a la Investigación Económica," awarded annually to the best Spanish economist under 40. His research interests include international trade, spatial economics, and econometrics. 

Presenting -- 

Title: "Market Entry and Plant Location in Multi-Product Firms" (joint with Juanma Castro-Vincenzi, Eugenia Menaguale and Alejandro Sabal)

Abstract: Multinational firms offer diverse products across countries due to variation in consumer tastes and production costs. Cannibalization forces further influence product variety. Using car-industry data, we estimate a quantitative model in which manufacturers decide where to produce and sell their products, featuring complementarities and substitutabilities across choices due to cannibalization, returns to scale and transport cost-savings. We provide a new algorithm to solve this class of combinatorial discrete choice problems. We examine the impact of demand and supply factors on product variety and study the effect of tariffs on global production, market offerings, and prices. Counterfactuals highlight the relevance of interdependencies and demonstrate how tariffs affect foreign outcomes through firms' production relocation.

Location: Hunter East 530 (in the library)