Zheng Liu, vice president and Director of the Center for Pacific Basin Studies at the San Francisco Fed, spoke with Faculti about how the rise in automation technology contributed to the rise of superstar firms over the past two decades. He explained the empirical link between automation technology and industry concentration, using a general equilibrium framewrk with heterogeneous firms and variable markups.
The Federal Reserve Bank of San Francisco (SF Fed) works to advance the nation’s monetary, financial, and payment systems to build a stronger economy for all Americans. As part of the U.S. central bank, the SF Fed serves the Twelfth Federal Reserve District, which covers the nine western states—Alaska, Arizona, California, Hawai’i, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. By pursuing our two key goals of maximum employment and price stability—known as the Fed’s dual mandate—we work toward supporting an economy that works for everyone.