Guo, Diyue

Assistant Professor

Ph.D. in Economics, University of Maryland


Email:diyueguo (at)


Office Hours:Wednesday 14:30-16:30


Biography Research Papers Research Projects

Working experience
2018.9-present, Assistant Professor, Wang Yanan Institute for Studies in Economics (WISE) and Institute of Economics, School of Economics, Xiamen University


Ph.D. Economics, University of Maryland at College Park, 2018
M.A. Economics, New York University, 2012
B.A. Economics, Shandong University, China, 2010
B.L. Law, Shandong University, China, 2010


Research Interests
Primary: Macroeconomics
Secondary: Firm Dynamics

1. “Multiproduct Firms and the Business Cycle”, working paper
Multiproduct firms account for a large fraction of economic activity and are actively engaged in changing their product mix. In this paper, I investigate changes in product scope, the number of products that a firm offers, over the business cycle and decompose the impact of such changes on aggregate output. I use the Nielsen Retail Scanner data, the weekly transactions of U.S. consumer goods, for 2007-2014. I find that firm product scope is an important margin of adjustment. The changes at the new margin are procyclical on average and heterogeneous across firms. Such product scope changes affect aggregate consumption and output by changing the total number of products available in the market and by affecting firms' markups. This decomposition is shown in a model featuring heterogeneous multiproduct firms, oligopolistic competition and free firm entry. In a recession, lower average product scope implies a lower number of product varieties, which disincentivizes consumption. Additionally, since the most productive firms have higher market shares, as the data suggests, they charge higher markups as oligopolistic competitors. The implied average markup goes up and further decreases consumption.
2. "Product Switching within Multiproduct Firms", working paper
I explore the within-firm product dynamics beyond the product scope changes. The measures of interest include within-firm product entry, exit, net entry and reallocation. The net entry is related to the product scope changes and is expected to be procyclical. The reallocation is an important channel for endogenous growth. To investigate the cyclicality of these measures and locate the firm-level factors that affect the within-firm product dynamics, I combine the Nielsen Retail Scanner data with the Compustat fundamental data for the listed firms, by matching the firm names. The listed Nielsen firms have lower net entry and reallocation rates in the recession years. The regressions of the net entry and reallocation rates on the unemployment rate reveal that the net entry is significantly procyclical on average and the reallocation is not. Moreover, firms' financial constraint condition and R&D significantly affect the reallocation, but not the net entry. 

 CPI Re-Construction Using US Big Data; Innovations in the US Video Game Industry; Firm Dynamics of Chinese E-Commerce Merchants