Rachel Griffith

The University of Manchester, Manchester, England, United Kingdom

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Publications (133)89.84 Total impact

  • Rachel Griffith · Martin O'Connell · Kate Smith
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    ABSTRACT: Over the Great Recession, UK households reduced real food expenditure. We show that they were able to maintain the number of calories that they purchased, and the nutritional quality of these calories, by adjusting their shopping behaviour. We document the mechanisms that households used. We motivate our analysis with a model of shopping behaviour in which households adjust shopping effort and the characteristics of their shopping basket in response to economic shocks. We use detailed longitudinal data and focus on within-household changes in basket characteristics and proxies for shopping effort.
    No preview · Article · Oct 2015 · Economica
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    Rachel Griffith · Martin O’Connell · Kate Smith
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    ABSTRACT: Shocks to world commodity prices and the depreciation of sterling led to a large increase in the price of food in the UK. It also resulted in large changes in the relative prices of different foods. We document these changes, and consider how they affected the composition of households’ shopping baskets. We isolate the impact of changes in relative food prices from variation in preferences using data on purchasing decisions made by a representative panel of British households. We show that changes in relative food prices led to a worsening in the nutritional quality of households’ shopping baskets, though this was partially mitigated by offsetting changes in preferences.
    Preview · Article · Mar 2015 · Oxford Review of Economic Policy
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    Rachel Griffith · Helen Miller
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    ABSTRACT: Revenues from corporate income taxes have remained relatively stable as a share of national income over the last three decades despite reductions in corporate tax rates and increased opportunities for multinational tax avoidance. This is largely explained by an increase in the share of corporate profits in national income. In this paper, we discuss the sources of corporate profits, and specifically corporate taxable profits; these include a normal return to capital investment, returns to labour or entrepreneurial effort that are realised as dividends or capital gains, and returns to market power. We relate these components of profits to the ways that corporate taxes can change incentives to invest or exert effort, and we discuss some implications for policy.
    Full-text · Article · Dec 2014 · Fiscal Studies
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    Rachel Griffith · Helen Miller · Martin O’Connell
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    ABSTRACT: Intellectual property accounts for a growing share of firms’ assets. It is more mobile than other forms of capital, and could be used by firms to shift income offshore and to reduce their corporate income tax liability. We consider how influential corporate income taxes are in determining where firms choose to legally own intellectual property. We estimate a mixed (or random coefficients) logit model that incorporates important observed and unobserved heterogeneity in firms’ location choices. We obtain estimates of the full set of location specific tax elasticities and conduct ex ante analysis of how the location of ownership of intellectual property will respond to changes in tax policy. We find that recent reforms that give preferential tax treatment to income arising from patents are likely to have significant effects on the location of ownership of new intellectual property, and could lead to substantial reductions in tax revenue.
    Full-text · Article · Apr 2014 · Journal of Public Economics
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    Rachel Griffith · Lars Nesheim
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    ABSTRACT: Existing hedonic methods cannot be easily adapted to estimate willingness to pay for product characteristics when willingness to pay depends on a very large basket of goods. We show how to marry these methods with revealed preference arguments to estimate bounds on willingness to pay using data on purchases of seemingly impossibly high dimensional baskets of goods. This allows us to use observed purchase prices and quantities on a large basket of products to learn about individual household’s willingness to pay for characteristics, while maintaining a high degree of flexibility and also avoiding the biases that arise from inappropriate aggregation.We illustrate the approach using scanner data on food purchases to estimate bounds on willingness to pay for the organic characteristic.
    Full-text · Article · Aug 2013 · Economics Letters
  • Pierre Dubois · Rachel Griffith · Aviv Nevo
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    ABSTRACT: Food purchases differ substantially across countries. We use detailed household level data from the US, France and the UK to (i) document these differences; (ii) estimate a demand system for food and nutrients, and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are important and can explain some difference (e.g., US-France difference in caloric intake), but generally cannot explain many of the compositional patterns by themselves. Instead, it seems an interaction between the economic environment and differences in preferences is needed to explain cross country differences.
    No preview · Article · Feb 2013 · American Economic Review
  • Rachel Griffith · Heike Harmgart
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    ABSTRACT: We adapt the Bresnahan and Reiss (1991. Entry and competition in concentrated markets. The Journal of Political Economy 99, no. 5: 977–10095. Bresnahan , T. and Reiss , P. 1991 . Entry and competition in concentrated markets . The Journal of Political Economy , 99 ( 5 ) : 977 – 1009 . [CrossRef], [Web of Science ®]View all references) model to allow for multiple store formats. We estimate the model using data for English supermarkets, and evaluate the impact of restrictive planning regulation on entry into the English grocery retail industry. We find that more restrictive planning regulation reduces the number of large format supermarkets in equilibrium. However, the impact is overstated if variation in demographic characteristics across markets is not also controlled for. Our estimates suggest that restrictive planning regulation leads to a loss to consumers of up to £10 m per annum. This cost must be offset against any benefits that arise, e.g. due to reduced congestion.
    No preview · Article · Feb 2012 · The International Review of Retail Distribution and Consumer Research
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    Laura Abramovsky · Rachel Griffith · Helen Miller
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    ABSTRACT: The research activities of multinational firms is increasingly mobile raising concerns about displacement of high-skilled employment in headquarter countries. We estimate of the impact offshoring inventors has on firms' use of inventors at home using within firm variation across industries. We use a instrumental variables to tackle possible endogeneity and identify robust bounds on the estimate. We cannot rule out the possibility that foreign inventors displace home inventors, but our main result suggests that a 10% increase in the number of inventors abroad results in a 1.9% increase in the number of inventors at home.
    Full-text · Article · Feb 2012
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    Full-text · Article · Jan 2012
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    Rachel Griffith · Lars Nesheim · Martin O ' Connell
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    ABSTRACT: There is policy interest in using tax to change food purchasing behaviour. The literature has not accounted for the oligopolistic structure of the industry. In oligopoly the impact of taxes depend on preferences, and how firms pass tax onto prices. We consider a tax on saturated fat. Using transaction level data we find that the form of tax and firms' strategic behaviour are important determinants of the impact. Our results suggest that an excise tax is more efficient than an ad valorem tax at reducing saturated fat purchases and an ad valorem tax is more efficient at raising revenue.
    Full-text · Article · Jan 2012
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    M.P. Devereux · Rachel Griffith · Helen Simpson
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    ABSTRACT: We examine whether discretionary government grants influence the location of new plants, and how effective these incentives are in the presence of agglomeration and urbanisation externalities. We find evidence that regional industrial structure affects the location of new entrants. Firms in more agglomerated industries locate new plants near to others in the same industry. Firms are also attracted to industrially diversified locations. Foreign multinationals locate new plants near to other foreign-owned plants in the same industry. Fiscal incentives in the form of grants are found to have some effect in attracting plants to specific geographic areas eligible for such aid.
    Full-text · Article · Oct 2011
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    Rachel Griffith · Stephen Redding · Helen Simpson
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    ABSTRACT: This paper investigates whether there is convergence in Total Factor Pro-ductivity at the establishment level, to the technological frontier. We find evidence of convergence to the frontier, which suggests the existence of tech-nological spillovers. The speed of catch-up does not appear to vary with the extent of foreign presence in the industry. But foreign multinationals do make up a significant proportion of establishments at the technological frontier. This implies that high productivity firms, both domestic and foreign-owned, make a contribution to productivity growth through technology transfer. Acknowledgements: This work was funded by the Gatsby Trust. This report has been produced under contract to the ONS. We are grateful to semi-nar participants at the Institute for Fiscal Studies, the Royal Economic Society Conference, and the University of Nottingham for helpful comments. Respon-sibility for any results, opinions, and errors lies with the authors alone.
    Preview · Article · Oct 2011
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    Rachel Griffith · Sokbae Lee · John Van Reenen
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    ABSTRACT: We examine the “home bias” of knowledge spillovers (the idea that knowledge spreads more slowly over international boundaries than within them) as measured by the speed of patent citations. We present econometric evidence that the geographical localization of knowledge spillovers has fallen over time, as we would expect from the dramatic fall in communication and travel costs. Our proposed estimator controls for correlated fixed effects and censoring in duration models, and we apply it to data on over two million patent citations between 1975 and 1999. Home bias is exaggerated in models that do not control for fixed effects. The fall in home bias over time is weaker for the pharmaceuticals and information/communication technology sectors where agglomeration externalities may remain strong.
    Full-text · Article · Jun 2011 · Quantitative Economics
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    Rachel Griffith · Helen Simpson
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    ABSTRACT: No abstract available.
    Preview · Article · Jun 2011
  • Rachel Griffith · Helen Miller · Martin O'Connell
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    ABSTRACT: The literature suggests that tax rates on mobile activities should fall to zero. Intellectual property is very mobile and has grown in importance. Firms can use intellectual property to shift income offshore and reduce their corporate income tax liability. Yet most intellectual property is held in relatively high tax countries. We estimate the impact of corporate taxes on where firms hold patents. We consider domestic and international taxes, and control for the potential non-tax costs and benefits associated with different locations. We allow heterogeneity across industries, firm size and, most importantly, unobservable patent specific heterogeneity in the responsiveness of patent location to tax. Our results suggest that, on average, corporate tax rates have a negative impact on the likelihood of a firm choosing a location, and that there is substantial heterogeneity in responses. We simulate the impact of recent reforms that apply a lower tax rate to patent income, finding that they attract patent income but result in losses in government revenues.
    No preview · Article · Jun 2011
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    Rachel Griffith · Helen Miller
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    ABSTRACT: In 2010 China was the world's fourth largest filer of patent applications. This followed a decade of unprecedented increases in investment in skills and Research and Development. If current trends continue China could rank first in the very near future. We provide evidence that the growth in Chinese patenting activity has been accompanied by a growth in Chinese inventors creating technologies that are near to the science base. Part of the success of China has been to attract the investment of foreign multinationals. This is also true for a number of other Emerging Economies. Europe's largest multinational firms increasingly file patent applications that are based on inventor activities located in emerging economies, often working alongside inventors from the firm's home country.
    Full-text · Article · Jan 2011
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    Rachel Griffith · Martin O'Connell
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    ABSTRACT: Governments around the world are increasingly concerned about the rise in diet-related chronic disease and there has been increased interest in policy interventions targeted at changing eating habits. In this paper, we discuss the ways in which food markets might fail to deliver the optimal outcome and how this may justify government intervention. We consider how well different types of policies – information campaigns, taxes and regulations – are able to counteract these market failures and we consider some of the implementation issues associated with targeting different consumers and anticipating firms' strategic responses.
    Preview · Article · Nov 2010 · Fiscal Studies
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    ABSTRACT: This paper investigates the determinants of vertical integration. We first derive a number of predictions regarding the relationship between technology intensity and vertical integration from a simple incomplete contracts model. Then, we investigate these predictions using plant-level data for the UK manufacturing sector. Most importantly, and consistent with theory, we find that the technology intensities of downstream (producer) and upstream (supplier) industries have opposite effects on the likelihood of vertical integration. Also consistent with theory, both these effects are stronger when the supplying industry accounts for a large fraction of the producer's costs. These results are generally robust and hold with alternative measures of technology intensity, with alternative estimation strategies, and with or without controlling for a number of firm and industry-level characteristics.
    Preview · Article · Sep 2010 · Journal of the European Economic Association
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    Rachel Griffith · Lars Nesheim
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    ABSTRACT: The recent literature has brought together the characteristics model of utility and classic revealed preference arguments to learn about consumers' willingness to pay. We incorporate market pricing equilibrium conditions into this setting. This allows us to use observed purchase prices and quantities on a large basket of products to learn about individual household's willingness to pay for characteristics, while maintaining a high degree of flexibility and also avoiding the biases that arise from inappropriate aggregation. We illustrate the approach using scanner data on food purchases to estimate bounds on willingness to pay for the organic characteristic. We combine these estimates with information on households' stated preferences and beliefs to show that on average quality is the most important factor affecting bounds on household willingness to pay for organic, with health concerns coming second, and environmental concerns lagging far behind.
    Full-text · Article · Jan 2010
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    R. Griffith · R. Harrison · H. Simpson
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    ABSTRACT: European Union countries have implemented widespread reforms to product markets in order to stimulate competition, innovation and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. In our analysis we exploit exogenous variation in the expected impact of the SMP across countries and industries to identify the effects of reforms on average profitability, and the effects of profitability on innovation and productivity growth.
    Preview · Article · Jan 2010

Publication Stats

8k Citations
89.84 Total Impact Points

Institutions

  • 2000-2015
    • The University of Manchester
      Manchester, England, United Kingdom
  • 1999-2012
    • The Institute for Fiscal Studies
      Londinium, England, United Kingdom
  • 1993-2012
    • Instituto de Estudios Fiscales
      Madrid, Madrid, Spain
  • 2003-2009
    • University College London
      • Department of Economics
      Londinium, England, United Kingdom
  • 2008
    • The National Bureau of Economic Research
      Cambridge, Massachusetts, United States
  • 2005
    • Harvard University
      Cambridge, Massachusetts, United States
  • 2004
    • IFS University College
      Londinium, England, United Kingdom
  • 2002
    • The University of Warwick
      Coventry, England, United Kingdom
  • 1995
    • University of Cambridge
      Cambridge, England, United Kingdom