The opportunity costs of entrepreneurs in international trade

Timothy Kehoe, Pau Pujolas and Kim Ruhl

Economics Letters, 2016, vol. 146, issue C, 1-3

Abstract: We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs’ forgone wages in the span-of-control model.

Keywords: Span-of-control model; Firm heterogeneity; Income distribution; International trade (search for similar items in EconPapers)
JEL-codes: D31 D43 F12 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Opportunity Costs of Entrepreneurs in International Trade (2016)
Working Paper: The Opportunity Costs of Entrepreneurs in International Trade (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:146:y:2016:i:c:p:1-3

DOI: 10.1016/j.econlet.2016.07.012

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