Inaugural Collaborative Research Visit Seminar by Mathias Klein (Sveriges Riksbank)

As of the summer of 2023, GEAR decided to introduce occasional short-term Collaborative Visit Seminars for researchers who are interested to come for a day or two up to a week at Reading to present and potentially work with GEAR colleagues on joint projects. We shall be holding this seminar series on an irregular basis depending on possible visits by external faculty members or policy makers aiming to engage in collaboration(s) with GEAR.

The inaugural collaborative visit seminar will be given by Mathias Klein (Sveriges Riksbank) on Thursday, 8 February 2024 at 2:30-4:00 pm GMT (London time) in Edith Morley 301 and the topic is Not All Supply Curves Slope Up (joint work with Edvin Ahlander and Evi Pappa). Abstract: We compile a unique firm-level data set containing information on prices and real output at the monthly frequency for a sample of Swedish industrial firms for more than 20 years and use it to estimate the short and medium run responses of prices and quantities to exogenous demand shocks. Inference on the supply slope is based on an IV regression of cumulative price growth on cumulative sales using global demand shocks as instruments. Not all supply curves slope upwards. The supply curve is flatter for firms with low market shares, low productivity, high unit labor costs and for exporting firms. The slope of the supply curve depends also on the aggregate state of the economy: individual supply curves are steeper in times of high capacity utilization, high inflation and of low financial volatility.

It will be possible to join via MS Teams – but, much better, do come in person. Right after the collaborative visit seminar everyone is invited to a drinks reception from 4:00 to 4:30 pm in EM301.