Max Brès

I'm a Senior Economist at Sveriges Riksbank, the Swedish central bank. I obtained my PhD from the European University Institute in 2023.

My research interests are in Macroeconomics with a special emphasize on search frictions in goods and labor markets. 

Contact: max.bres[at]riksbank.se

Working papers


Future versus Today's Improvements: The Trade-off of Place-Based Policies 

with Philipp Kircher and David Koll

This paper provides causal evidence on the impact of subsidy re-allocation between high-technology sectors and low-skill sectors on local labor markets. We exploit a policy targeting under-performing employment areas, France’s Aides à Finalité Régionale, which relaxes rules governing the allocation of firm subsidies while keeping their level constant. In response, policy makers re-allocate subsidies away from research and development to mainly low-skilled manufacturing and service sectors. It triggers a persistent improvement of employment, mainly through increased low-skilled manufacturing employment and at the expense of R&D related occupations. In the long term, though, labor income and productivity decrease. Finally, at the individual level, workers employed in manufacturing at the time of the treatment benefit on average of 2% higher hourly wage even 10 years after the policy was lifted.


Aging Consumers, Competition and Growth 

with Daniele Angelini

Abstract: As people age, their preferences become less elastic and the opportunity cost of time drops after retirement, influencing purchasing behaviour. Hence, demographic changes affect competition by altering the age composition of consumers, carrying substantial macroeconomic implications. We identify this demand-side channel of demographic changes using unexpected shifts in the age composition of foreign consumers. We find that middle-aged consumers reduce competition with respect to younger and older consumers, resulting in lower production and higher prices. In a multi-sector general equilibrium search model we show that young consumers enhance between-varieties competition and old consumers enhance within-varieties competition. Conversely, middle-aged consumers reduce competition on both margins, shifting demand to less productive firms, thus raising average prices and slowing economic growth. In the United States, changes in the age composition of consumers led to an 8.7% reduction GDP growth from 1995-2004 and a 10.3% increase from 2005-2019 as baby-boomers aged.


Selected work in progress


Customer Loyalty and the Rise of Large Firms

Abstract:  In this paper, I develop a model of multi-product firm dynamics with competitive search on goods market. With buyers subject to preference shocks, firms expand beyond their core product in order to attract and retain customers. The model provides micro-foundations to the existence of within-firm heterogeneity in terms of prices, sales and markups. In line with empirical evidence, I show that a firm does not exploit incumbent customers' loyalty by increasing markups over the growth path, but instead deepens buyer's loyalty with a larger range of products and, therefore, profits extracted from each buyer.  A drop in search costs pushes the largest firms to further expand their product range, increasing aggregate profits and reducing entry.


Leading Firms and the Future of Work 

with Fabrizio Colella, Philipp Kircher, David Koll and Vinzenz Ziesemer


Estimating the Costs and Benefits of Price Search 

with Lukas Nord