Measuring Economic Activity in the Presence of Superstar MNEs

__Revise & Resubmit, Economic Letters__ with [Giorgi Nikolaishvili]( In 2015, the Irish economy experienced a 25 percent annual increase in GDP, driven largely by the repositioning of multinational enterprises' intangible assets and their associated revenue streams. We address these distortions in assessing the state of the domestic Irish economy by utilizing a two-step dynamic factor model. We find that real output in Ireland is heavily inflated by the presence these intangible assets and their associated tax minimization schemes. We use our findings to assess the state of the domestic economy and gauge its fiscal position among EU27 member states.

Firm-Level Productivity and Corruption: A Firm-Level Analysis on Emerging Markets

I document significant heterogeneity in the marginal effect of corruption on the underlying fixed costs of firm-level market participation, which in turn drives selection across firms into trade participation. The effect is particularly pronounced for domestically-owned and foreign affiliate firms engaged in trade, suggesting that underlying trade-related fixed costs are the most vulnerable parameters with respect to variation in host-country corruption.