Liu Discusses Research on Link between Automation and Superstar Firms

Zheng Liu, vice president and Director of our Center for Pacific Basin Studies, sat down recently with Faculti to talk about his working paper with coauthors Hamid Firooz and Yajie Wang, “Automation and the Rise of Superstar Firms.”

In the Faculti interview, Liu explains the empirical link between automation technology and industry concentration over the past two decades, using a general equilibrium framework with heterogeneous firms and variable markups.

The Federal Reserve Bank of San Francisco (SF Fed) serves the public by promoting a healthy, sustainable economy, and supporting the nation’s financial and payment systems. With offices in Los Angeles, Seattle, Salt Lake City, Portland and Phoenix, the Bank serves the Twelfth Federal Reserve District, which includes one-fifth of the nation’s population and represents the world’s fourth-largest economy. As part of the nation’s central bank, the SF Fed informs monetary policy, regulates banks, administers certain consumer protection laws and acts as a financial partner to the U.S. government.