research

peer reviewed articles

1. Creative Destruction Through Innovation Bursts

   Giuseppe Berlingieri, Maarten De Ridder, Danial Lashkari, and Davide Rigo

   Conditionally Accepted, Econometrica, 2026

   Abstract Preprint

   In theories of creative destruction, product innovation is a key driver of aggregate growth. In this paper, we confront the predictions of these theories about product dynamics with empirical patterns in product-level data on the near-universe of French manufacturing firms. We find that the process of product innovation frequently exhibits bursts-episodes in which firms rapidly add multiple products to their portfolio. Such bursts lead to substantial shifts in revenue and explain the majority of the variance in firm-level growth. We introduce a model of firm product innovation compatible with such a process that also nests the canonical models of creative destruction. We show that innovation bursts alter the equilibrium composition of age, size, and innovation efficiency of firms, and further explain the concentration of production among superstar firms. Our model thus enables the joint study of the determinants of industry concentration and growth in a setting consistent with the empirical patterns of product dynamics.

2. The Role of Firm‐to‐Firm Relationships in Exporter Dynamics

   Davide Rigo

   Economica, 2024

   Abstract Article

   This paper investigates the role of firm-to-firm relationships in export market dynamics, documenting the following stylized facts for French exporters. First, exporters grow in a foreign market by expanding their customer base; the average French exporter doubles its number of buyers after 8 years. Second, sales to existing customers remain the predominant source of growth in a foreign market, with long-lasting relationships contributing to most export values. Third, as a mechanism driving firms’ growth in a relationship, prices fall as a relationship ages. Fourth, I exploit the Brexit referendum as a quasi-natural experiment to examine how firm-to-firm relationships adjust in response to changes in market access. I find that French exporters with long-lasting relationships in the UK are less affected by the referendum shock and exhibit higher exchange rate pass-through. Overall, these findings indicate that long-lasting relationships represent a crucial margin for export market growth and in shielding exporters from changing market conditions.

3. Multinational Production and Investment Provisions in Preferential Trade Agreements

   Sébastien Miroudot and Davide Rigo

   Journal of Economic Geography, 2022

   Abstract Article Replication

   Using a novel database on multinational production (MP), this article investigates the impact of preferential trade agreements on foreign affiliates’ production activities. We find that trade agreements with investment provisions have a positive effect on MP. On average, signing an agreement including investment provisions is associated with increased MP up to 26% in the manufacturing sector and 34% in the services sector. Our findings suggest that investment provisions increase MP by facilitating multinationals operations in foreign markets, especially for activities requiring the proximity of suppliers and consumers, and by helping multinationals joining global value chains.

working papers

1. Work From Home and Firm Productivity: The Role of ICT and Size

   Filippo Boeri, Riccardo Crescenzi, and Davide Rigo

   Under Review

   Abstract Preprint

   This paper investigates the impact of post-pandemic adoption of work from home (WFH) on firm productivity. The paper uses administrative firm-level data covering the universe of remote workers in Italy and leverages exogenous pre-pandemic variation in firm-specific access to fibre broadband as an instrument. We find that WFH had a large negative impact on productivity during the pandemic. However, larger firms and those with prior ICT investments mitigated these losses. In the longer term, the impact of WFH on productivity is no longer significant. Yet, we find suggestive evidence that firms employing highly qualified workers experienced productivity gains.

2. Work From Home, Labour Market Participation and Employment

   Riccardo Crescenzi, Davide Dottori, and Davide Rigo

   Under Review

   Abstract Preprint

   We examine how the pandemic-driven rise in work from home (WFH) affected labour market participation and employment in Italy. Leveraging a unique administrative dataset covering the population of remote workers, we find that WFH had a positive effect on both activity and employment rates at the local labour market (LLM) level. To address endogeneity concerns, we instrument the observed increase in WFH with its potential, derived from LLM’s sectoral compositions. Controlling for several demographic and economic factors that could affect the distribution of WFH potential, we find no evidence of pre-trends. We also explore the mechanisms driving our results. The impact is stronger in response to the increase in WFH among women in childrearing age and in areas with limited childcare services. We also find that the effect is more pronounced in less advanced areas and in less densely populated LLMs. These findings suggest that WFH can play a role in terms of labour market inclusion.

3. The Geography of Remote Workers: Evidence from Matched Employer-Employee Data

   Filippo Boeri and Davide Rigo

   New version coming soon!

   Abstract Preprint

   The rise of work from home (WFH) has profoundly reshaped commuting patterns and work dynamics across the globe. Using matched employer-employee data on the whole universe of French workers, we study the effect of post-pandemic changes in workers’ commuting patterns on firm-level outcomes. We find that the average French firm saw an 8% increase in employee commute distances compared to the pre-pandemic period. This shift was primarily driven by incumbent firms hiring individuals who live further away, and was especially notable in occupations with high WFH potential. In the aftermath of the pandemic, firms with larger increases in commute distances exhibited gains in value-added, productivity and hours worked. Overall, our findings highlight the positive impacts of the pandemic-induced shift towards remote working on firms.

selected work in progress

1. Trade Agreements, Multinationals and Welfare

   Haishi Li, Sebastien Miroudot, and Davide Rigo
2. Work From Home, Firms and Workers

   Riccardo Crescenzi and Davide Rigo

   Awarded VisitINPS Scholarship
3. Working from Home and Labour Market Attachment

   Davide Rigo

   Awarded VisitINPS Scholarship