Structural Estimation and Solution of International Trade Models with Heterogeneous Firms

Russell Hillberry, Edward Balistreri and Thomas Rutherford ()

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: We present an empirical implementation of a general-equilibrium model of international trade with heterogeneous manufacturing firms. The theory underlying our model is consistent with Melitz (2003) and Bernard et al. (2004). A nonlinear structural estimation procedure identifies a set of core structural parameters and unobserved firm-level trade frictions which best fit the geographic pattern of trade. Once the parameters are identified, we utilize a decomposition technique for computing general-equilibrium counterfactuals. We illustrate this technique using trade and protection data from the Global Trade Analysis Project (GTAP). In our calculations we first assess the economic effects of reductions in measured tariffs, and we then compare this impact with reductions in estimated fixed trade costs.

JEL-codes: C68 F12 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2007-06
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
http://degit.sam.sdu.dk/papers/degit_12/C012_038.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to degit.sam.sdu.dk:80 (No such host is known. )

Related works:
Journal Article: Structural estimation and solution of international trade models with heterogeneous firms (2011)
Working Paper: Structural Estimation and Solution of International Trade Models with Heterogeneous Firms (2008)
Working Paper: Structural Estimation and Solution of International Trade Models with Heterogeneous Firms (2008)
Working Paper: Structural Estimation and Solution of International Trade Models with Heterogeneous Firms (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c012_038

Access Statistics for this paper

More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Bibliographic data for series maintained by Jan Pedersen ().