Can you jump this high? Quantifying barriers to market participation

Mattia Guerini, Patrick Musso and Lionel Nesta

Economic Modelling, 2021, vol. 98, issue C, 192-217

Abstract: We develop a new method to estimate the parameters of threshold distributions for market participation based on an agent-specific attribute and its decision outcome. This method requires few behavioral assumptions, is not data demanding, and can adapt to various parametric distributions. An application to export decisions by French firms shows that threshold distributions are generally right-skewed. We then reveal the asymmetric effects of past policies over different quantiles of the threshold distributions.

Keywords: Parametric distributions of thresholds; Maximum likelihood estimation; Fixed costs; Export decision (search for similar items in EconPapers)
JEL-codes: C40 D01 F14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:98:y:2021:i:c:p:192-217

DOI: 10.1016/j.econmod.2021.02.017

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