Daeeun Bae
About Me
I am a Ph.D. candidate in Economics at George Washington University. I am on the job market for the 2025-26 academic year.
Research Interests
Macroeconomics, Economic Growth
Job Market Paper
Financial Development and Endogenous Investment-Specific Technical Change
Awarded GW-CIBER Research Grant (2024)
Presentations: SEA 95th Annual Meeting (2025, Scheduled), Midwest Macroeconomics Meeting (2025, Scheduled), Johns Hopkins University (2025), George Washington Univeristy (2024)
Abstract: I show that financial development is a key determinant of cross-country variation in the rate of investment-specific technical change. Using a large cross-country dataset, I document that countries with more developed financial markets exhibit higher rates of investment-specific technical change, and that investment goods production is more intensive in value added from high-R&D industries than consumption goods production. To explain these findings, I develop a multi-industry endogenous growth model with credit constraints on R&D expenditures. In the model, R&D drives productivity growth, and financial development disproportionately benefits the productivity growth of high-R&D industries because they are more dependent on external financing. Taken together with the different industrial composition of final goods production, financial development endogenously generates faster productivity growth in investment goods production. The quantitative analysis shows that this endogenous channel accounts for approximately 40% of the observed cross-country relationship between financial development and investment-specific technical change.
Working Papers
Corporate Taxes and Innovation: Does Firm Size Matter?
Draft available upon request
Presentations: George Washington University (2023)
Abstract: This paper studies the effects of corporate taxes on firms’ innovation using a sample of publicly traded U.S. firms. First, I find that lower corporate taxes lead to greater innovation activity. Second, this effect is heterogeneous across firm size, as small firms respond more strongly to tax changes. Third, innovations by small firms tend to be more radical, reflected in the higher value of the patents they generate following tax reductions.
Work in Progress
Financial Development and Trade Network Formation with Siwon Ryu
R&D-biased Structural Change with Roberto Samaniego
Referee Services
European Economic Review
Teaching
Instructor
Math Camp (Ph.D.), Summer 2022, 2023
Teaching Assistant
Macroeconomics I, (Ph.D.), Fall 2022 Macroeconomics II, (Ph.D.), Spring 2022, 2024, 2025 Principles of Mathematics for Economics, (undergraduate), Fall 2023 Principles of Economics II, (undergraduate), Fall 2021, Spring 2023, Fall 2024
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