Firm heterogeneity and costly trade: A new estimation strategy and policy experiments

Ivan Cherkashin, Svetlana Demidova, Hiau Looi Kee () and Kala Krishna ()

Journal of International Economics, 2015, vol. 96, issue 1, 18-36

Abstract: We build a tractable partial equilibrium model in the spirit of Melitz (2003) to help understand the role of trade preferences given to developing countries, as well as the efficacy of various subsidy policies. The model allows for firm level heterogeneity in both demand and productivity and lets the mass of firms that enter be endogenous.

Keywords: Rules of origin; Firm heterogeneity; Demand shocks; Policy experiments (search for similar items in EconPapers)
JEL-codes: F12 F14 F17 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

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Related works:
Working Paper: Firm Heterogeneity and Costly Trade: A New Estimation Strategy and Policy Experiments (2010)
Working Paper: Firm Heterogeneity and Costly Trade: A New Estimation Strategy and Policy Experiments (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:96:y:2015:i:1:p:18-36

DOI: 10.1016/j.jinteco.2014.12.007

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