# Collaborative Research: Understanding the Incidence of Market Distortions

> **NSF 01002526DB NSF RESEARCH & RELATED ACTIVIT** · Duke University (NC) · $272,999

## Abstract

This award funds a research project that combines extremely rich and detailed data with economic theory to study how the burden of market failures is shared in the economy. Market failures prevent resources, such as labor and capital, from being used in the places where they are most valuable. While it is known that market failures are a feature of all economies and contribute to income differences across countries, the question of which types of households are affected most by these market failures is much less researched. This project makes progress on this gap by developing tools to connect and analyze multiple datasets that provide an extensive set of links in the economy between households and firms, between both households and firms and the government, and between the firms themselves. Understanding which groups benefit and which groups lose out from policies that address such market failures is vital to the design of approaches that maximize the welfare of any nation. The research outcomes could be essential for researchers and decisionmakers in shaping optimal U.S. policies and potentially enhancing the wellbeing of households and businesses.  

This award funds a research project that develops tools to estimate distortions—markups, markdowns, and taxes that prevents resources being allocated to their best uses—at a highly disaggregated level and trace them to individuals through arbitrary trade, employment, and financial networks. This methodology is applied to adm

## Key facts

- **NSF award ID:** 2446993
- **Awardee organization:** Duke University (NC)
- **SAM.gov UEI:** TP7EK8DZV6N5
- **PI:** Federico Huneeus
- **Primary program:** 01002526DB NSF RESEARCH & RELATED ACTIVIT
- **All programs:** GRADUATE INVOLVEMENT
- **Estimated total:** $272,999
- **Funds obligated:** $272,999
- **Transaction type:** Standard Grant
- **Period:** 07/01/2025 → 06/30/2028

## Primary source

NSF Award Search: https://www.nsf.gov/awardsearch/showAward?AWD_ID=2446993

## Citation

> US National Science Foundation, Award 2446993, Collaborative Research: Understanding the Incidence of Market Distortions. Retrieved via AI Analytics 2026-06-07 from https://api.ai-analytics.org/grant/nsf/2446993. Licensed CC0.

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