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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). Centre for Economic Performance, London School of Economics and Political Science, 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
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 10 May 2016 10:29
Last Modified: 20 Nov 2019 04:56
Funders: Economic and Social Research Council, Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/66444

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