Abstract. We document a novel empirical finding: the prices of competing services ‒ in our case, hotels ‒ appear not to be spatially correlated in the urban landscape, not even following exogenous demand shocks such as the announcement of major sport events. We thus argue that in this specific setting, topographic location is not a first order determinant of price competition. To better understand the latter, we estimate a rich model of spatial competion using fine-grained hotel-level data featuring daily price variations.
Joint work with Francesco del Prato. Project approved for the VisitINPS 2020 program (access to Italian matched employer-employee data).
Abstract. In reviewing tentative explanations for the stagnation of productivity growth which is observed in the Italian economy, we argue that labor market policies may have played a role by worsening factor misallocation across firms. We assess this hypothesis through a battery of empirical tests using matched employer-employee data.