Welcome! I'm an economist in the Macroeconomic and Monetary Studies Function at the Federal Reserve Bank of New York. 

My research focuses mainly on how long-term business relationships between firms affect the aggregate economy.


Trade Policy and the Structure of Supply Chains

How does uncertainty about trade policy affect firms' international supply chains? We provide evidence that a reduction in uncertainty can foster the adoption of long-term, "Japanese-style" relationships between U.S. importers and foreign suppliers. We show that the U.S.' granting of Permanent Normal Trade Relations to China in 2000 led to a shift towards Japanese-style relationships, which benefited U.S. consumers.

Share of "Japanese-style" relationships

Firm-to-Firm Relationships and the Pass-Through of Shocks

Economists have long suspected that long-term relationships between firms might lower the responsiveness of prices to shocks due to the use of fixed price contracts. Using transaction-level trade data I show that prices in long-term relationships are in fact more responsive to shocks than prices in new relationships. Since fewer new relationships are formed in recessions than in expansions, pass-through varies over the business cycle with average relationship length.

Pass-through by age of firm-to-firm relationship

© 2017 by Sebastian Heise. Proudly created with

  • Facebook Clean Grey
  • Twitter Clean Grey
  • LinkedIn Clean Grey
This site was designed with the
website builder. Create your website today.
Start Now