Martin C. Schmalz

University of Oxford
Park End Street
United Kingdom

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliations: Oxford University and CESifo, ECGI and CEPR

NBER Working Papers and Publications

December 2018Inequality and Market Concentration, When Shareholding is More Skewed than Consumption
with Joshua Gans, Andrew Leigh, Adam Triggs: w25395
Economic theory suggests that monopoly prices hurt consumers but benefit shareholders. But in a world where individuals or households can be both consumers and shareholders, the impact of market power on inequality depends in part on the relative distribution of consumption and corporate equity ownership across individuals or households. The paper calculates this distribution for the United States, using data from the Survey of Consumer Finances and the Consumer Expenditure Survey, spanning nearly three decades from 1989 to 2016. In 2016, the top 20 percent consumed approximately as much as the bottom 60 percent, but had 13 times as much corporate equity. Because ownership is more skewed than consumption, increased mark-ups increase inequality. Moreover, over time, corporate equity has bec...

Published: Joshua Gans & Andrew Leigh & Martin Schmalz & Adam Triggs, 2019. "Inequality and market concentration, when shareholding is more skewed than consumption," Oxford Review of Economic Policy, vol 35(3), pages 550-563. citation courtesy of

November 2013Housing Collateral and Entrepreneurship
with David A. Sraer, David Thesmar: w19680
This paper shows that collateral constraints restrict entrepreneurial activity. Our empirical strategy uses variations in local house prices as shocks to the value of collateral available to individuals owning a house and controls for local demand shocks by comparing entrepreneurial activity of homeowners and renters operating in the same region. We find that an increase in collateral value leads to a higher probability of becoming an entrepreneur. Conditional on entry, entrepreneurs with access to more valuable collateral create larger firms and more value added, and are more likely to survive, even in the long run.

Published: MARTIN C. SCHMALZ & DAVID A. SRAER & DAVID THESMAR, 2017. "Housing Collateral and Entrepreneurship," The Journal of Finance, vol 72(1), pages 99-132. citation courtesy of

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