Two-sided heterogeneity and trade

Bernard, Andrew B., Moxnes, Andreas and Ulltveit-Moe, Karen Helene (2016) Two-sided heterogeneity and trade. CEP Discussion Paper (1426). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper develops a multi-country model of international trade that provides a simple microfoundation for buyer-seller relationships in trade. We explore a rich dataset that identifies buyers and sellers in trade and establish a set of basic facts that guide the development of the theoretical model. We use predictions of the model to examine the role of buyer heterogeneity in a market for firm-level adjustments to trade shocks, as well as to quantitatively evaluate how firms’ marginal costs depend on access to suppliers in foreign markets.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2016 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
Date Deposited:	10 May 2016 10:29
Last Modified:	13 Sep 2024 20:34
Funders:	Economic and Social Research Council, Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/66444

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