Andrii Parkhomenko

Assistant Professor | University of Southern California - Marshall School of Business

Research Interests

Macroeconomics, Labor Economics, Economic Geography, Housing


Working Papers

Housing Supply Regulation: Local Causes and Aggregate Implications
Kraks Fond prize for the Best Student Paper at the 7th European Meeting of the Urban Economics Association, Copenhagen 2017
I study why some cities have strict housing supply regulation, how regulation affects the economy, and what policymakers can do to mitigate its effects. I develop and calibrate a spatial equilibrium model with heterogeneous workers, where local regulation is endogenously determined by voting. Cities with high productivity and scarce land vote for strict regulation. In a quantitative exercise, I find that regulation leads to spatial misallocation of labor and therefore reduces aggregate productivity. It also contributes to skill sorting, and wage and house price dispersion across cities. A federal policy that weakens incentives to regulate could raise productivity by 2.5%.


Key Words: housing supply regulation, productivity, spatial misallocation, wage inequality, house prices
JEL Classification: D72, E24, J31, R13, R31, R38, R52

Publications

Managers and Productivity Differences, with Nezih Guner and Gustavo Ventura, Review of Economic Dynamics  (29), 2018, pp. 256-282
We document that for a group of high-income countries the life-cycle earnings growth of managers relative to non managers is positively correlated with output per worker. We interpret this evidence through the lens of an equilibrium life-cycle, span-of-control model where managers invest in their skills. We use the model to quantify the importance of exogenous productivity differences and the size-dependent distortions emphasized in the misallocation literature. Our findings indicate that such distortions are critical to generate the observed differences in the growth of relative managerial earnings across countries. Distortions that halve the growth of relative managerial earnings, a move from the U.S. to Italy in our data, lead to a reduction in managerial quality of 27% and to a reduction in output of about nearly 7% -- more than half of the observed gap between the U.S. and Italy. Cross-country variation in distortions accounts for about 42% of the cross-country variation in output per worker gap with the U.S.

Key Words: cross-country income differences, managers, distortions, management practices, size distribution, skill investment
JEL Classification:
E23, E24, J24, M11, O43, O47

Media: VOX

Selected Work in Progress

Place-Based Unemployment Insurance

Aggregate and Local Effects of Migration Restrictions in China, with Shimeng Liu and Tongbin Zhang


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