Truncated productivity distributions and the intensive trade margin

Cletus Coughlin and Subhayu Bandyopadhyay

Economics Letters, 2020, vol. 196, issue C

Abstract: We derive a novel analytical relationship to show that for an upper truncated Pareto distribution average firm exports fall with variable trade costs and rise with the truncation limit. We extend the analysis to consider truncated lognormal and Fréchet distributions.

Keywords: Productivity distributions; Heterogeneous firms; Intensive margin (search for similar items in EconPapers)
JEL-codes: F10 R10 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:196:y:2020:i:c:s016517652030358x

DOI: 10.1016/j.econlet.2020.109596

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