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Offshore Profit Shifting and Aggregate Measurement: Balance of Payments, Foreign Investment, Productivity, and the Labor Share

By Fatih Guvenen, Raymond J. Mataloni Jr., Dylan G. Rassier, and Kim J. Ruhl

American Economic Review, June 2022

We show how offshore profit shifting by US multinational enterprises affects several key measures of the US economy. Profits shifted out of the United States grew rapidly from the mid-1990s to 2010 and have since waned. From 1982–2016, on average, 38 pe...

Migrants and Firms: Evidence from China

By Clement Imbert, Marlon Seror, Yifan Zhang, and Yanos Zylberberg

American Economic Review, June 2022

How does rural-urban migration shape urban production in developing countries? We use longitudinal data on Chinese manufacturing firms between 2000 and 2006, and exploit exogenous variation in rural-urban migration induced by agricultural income shocks fo...

Screening Inattentive Buyers

By Jeffrey Mensch

American Economic Review, June 2022

Information plays a crucial role in mechanism design problems. A potential complication is that buyers may be inattentive, and so their information may endogenously and flexibly depend on the offered mechanism. I show that it is without loss of generality...