Trade Costs and Endogenous Nontradability in a Model of Sectoral and Firm-Level Heterogeneity

2008 ◽  
Author(s):  
Manoj Atolia
Keyword(s):  
Trade Costs ◽  
Firm Level

scholarly journals Trade Policy is Real News: Theory and Evidence

2021 ◽  
Vol 2021 (1330) ◽  
pp. 1-60
Author(s):  
George Alessandria ◽  
◽  
Carter Mix ◽  
◽  
Keyword(s):  
Trade Policy ◽  
Economic Activity ◽  
Trade Costs ◽  
Trade Barriers ◽  
Firm Level ◽  
Hours Worked ◽  
Short Run ◽  
Aggregate Effects ◽  
Trade Growth ◽  
Over Time

We evaluate the aggregate effects of changes in trade barriers when these changes can be implemented slowly over time and trade responds gradually to changes in trade barriers because firm-level trade costs make exporting a dynamic decision. Our model shows how expectations of changes in trade barriers affect the economy. We find that while decreases in trade barriers increase economic activity, expectations of lower future trade barriers temporarily decrease investment, hours worked, and output. Further- more, canceling an expected decline in future trade barriers raises investment and output in the short run but substantially lowers medium-run growth. These effects are larger when the expected reform is bigger. In the data, we find that countries with more trade growth after the General Agreement on Tariffs and Trade (GATT) rounds decreased investment and hours worked in the years leading to the tariff cuts, as predicted by our model.

scholarly journals Markups, Quality, and Trade Costs

2020 ◽  
Vol 20 (36) ◽  
Author(s):  
Natalie Chen ◽  
Luciana Juvenal
Keyword(s):  
Strong Support ◽  
Trade Costs ◽  
Firm Level ◽  
Data Set ◽  
Unique Data ◽  
Ad Valorem

We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are smaller in magnitude for higher quality exports. We find strong support for the predictions of the model using a unique data set of Argentinean firm-level wine exports combined with experts wine ratings as a measure of quality.

Marshallian Cross: An Alternative Justification and Related Issues

2013 ◽  
pp. 108-120 ◽  
Author(s):  
L. Grebnev
Keyword(s):  
Alternative Treatment ◽  
Supply And Demand ◽  
Firm Level ◽  
Economics Courses ◽  
Introductory Economics

The paper provides a justification of the laws of supply and demand using the concept of a marginal firm (technology) for the case of perfect competition.The ideological factor of excessive attention to the analysis of marginal parameters at the firm level in the introductory economics courses is discussed. The author connects these issues to the ideas of J. B. Clark and gives an alternative treatment of exploitation.

Sign in / Sign up

Export Citation Format

Share Document