PhD Candidate, Department of Economics


Andreas KropfContact Information

Department of Economics
Northwestern University
2001 Sheridan Road
Evanston, IL 60208

Phone: 224-622-6168



Ph.D., Economics, Northwestern University, 2017 (expected)
M.A., Economics, Northwestern University, 2012
M.A., Finance, Albert Ludwig University of Freiburg, 2010
B.A., Business and Economics, University of Basel, 2007

Primary Fields of Specialization

Macroeconomics, Financial Economics

Secondary Fields of Specialization

International Trade, Monetary Economics, Economic History

Curriculum Vitae

Download Vita (PDF)

Job Market Paper

“Why is Installed Capital Worth so Little?”  Download (PDF)

This paper builds on two key facts about the aggregate Tobin’s Q, defined as the ratio of the aggregate value of installed capital divided by its replacement cost. First, the average value of Q in all the countries which I consider is significantly below unity. That is, installed capital is on average worth substantially less than its replacement cost. Second, there are large, systematic difference in the value of Q across countries. I develop a dynamic general equilibrium model to interpret these two facts. In the benchmark model, firms face idiosyncratic shocks to technology and costs to adjusting capital. An empirically plausible version of the model, estimated using Compustat data, implies that the steady state value of Q is less than one. I then build a model based on labor adjustment costs to account for the variability of Q across countries. Different degrees of labor market regulation across countries implies different costs of adjusting labor across countries. A comparison of Q and the OECD index of employment protection supports this view.


“Fixed Costs Per Shipment”, with Philip Sauré, Journal of International Economics, Volume 92, Issue 1, 2014.

“The arrival of cheap goods: measuring the impact of Chinese import competition on Nordic prices”, with Raphael Auer and Andreas Fischer, Sveriges Riksbank Economic Review, Issue 2, 2012.

Work in Progress

“Business Internationalization and the Rise in Corporate Profits”


Teaching evaluations available upon request


Prof. Martin Eichenbaum (Committee Chair)
Prof. Lawrence Christiano
Prof. Matthias Doepke
Prof. Mark Witte (Teaching Reference)