Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Session Overview |
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SUN 3-1: Government
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| Presentations | ||
Government Spending and Rising Industry Stars London Business School We construct detailed ex ante firm-level exposures to government spending by linking federal procurement data to appropriations bills, which grant agencies the budget authority to procure goods and services. We find that government spending is large, persistent, and disproportionately allocated to a select number of firms within industries. These firms earn large abnormal returns and steadily gain market share, with these effects concentrated in a few trading days coinciding with contract award announcements. Reflecting their growing market share, firms that repeatedly receive government contracts experience rising profitability and increasing markups, creating rising industry stars.
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