Tasaneeya Viratyosin

Published/Forthcoming

The Unprecedented Stock Market Reaction to COVID-19
The Review of Asset Pricing Studies, 2020.
(joint with Scott Baker, Nicholas Bloom, Steven J. Davis, Kyle Kost, and Marco Sammon)
NBER version

Working Papers

Innovation Spillovers Along the Supply Chain (Job Market Paper)

I provide a novel framework to understand innovation spillovers along the supply chain. Given motivating evidence that firms innovate in tandem with supply chain partners, and conversely, that innovation plays a crucial role in relationship formation, I introduce a dynamic, heterogeneous-firm model that endogenizes many-to-many supply chain relationships and innovation in general equilibrium. Product complementarity in input quality along the supply chain generates positive assortative matching in supply chain relationships, and spillovers arise because innovations by supply chain partners reshape competition and increase incentives to innovate. Due to product complementarity and sorting, innovations along the supply chain propagate heterogeneously, favoring innovative firms. I validate the model’s predictions using firm-level variation in R&D tax credits, showing that innovations along the supply chain predict increases in R&D, firm value, and returns to R&D. Using differences between supply chain and citation networks, I find that a 1 p.p. increase in innovation from a firm’s downstream network corresponds to a 1.26 p.p. increase in R&D intensity due to trade relationships and a 0.27 p.p. increase due to knowledge spillovers. Consistent with my model, returns from partners’ innovations accrue disproportionately to innovative firms. Feedback from bidirectional spillovers across sectors linked along the supply chain amplifies and prolongs the propagation of aggregate shocks, doubling the output response following a discount rate shock. Finally, sorting and feedback jointly account for 27 percent of output.

Local Power, Global Reach: The Influence of Deposit Market Power on International Banking
(joint with Sergey Sarkisyan)

We provide causal evidence that local market power in deposit markets drives international transmission of US monetary policy through global banks. After a contractionary monetary shock, global banks with local deposit market power increase bank deposit spreads and experience outflows of domestic deposits. They increase flows from foreign branches to finance domestic lending but reduce lending abroad, thus cutting domestic lending less than local banks: a 1 p.p. monetary shock leads to $180 billion in flows from foreign branches to US offices. Our estimates indicate that local deposit market power is critical in explaining the international transmission of US monetary shocks.

Work in Progress

The Slowdown of Technology Diffusion

This paper introduces a new measure of technology diffusion—the average age of technology cited by firms or patents—to capture the speed at which ideas propagate across firms. I document that the speed of technology diffusion has declined over the past two decades: the average age of a patent’s technology base has risen from 4.5 years in 1998 to between 6 and 6.5 years in the past decade. In the cross-section, I show that greater firm-level R&D investment predicts faster diffusion: patents built on newer technology command a higher market value and have greater technological value (as measured by citations), and firms that file patents built on newer technology are more valuable. Consistent with labor market movements driving technology diffusion, I exploit state-level variation in the removal of inevitable disclosure doctrines and find that the resulting increase in labor market mobility was associated with greater technology diffusion across competing firms within the same geographical area but reduced diffusion within firms, suggesting that firms responded to the threat of trade secret leakage by limiting internal information spillovers. The concurrent decline in labor market mobility observed in the U.S. economy may be an important contributor to the slowdown in technology diffusion and productivity growth observed in recent decades.

References