Quality Sorting and Trade: Firm-level Evidence for French Wine

Matthieu Crozet, Keith Head and Thierry Mayer

The Review of Economic Studies, 2012, vol. 79, issue 2, 609-644

Abstract: Empirical investigation of the quality interpretation of the Melitz (2003) model of firm heterogeneity and trade has been limited by the lack of direct data on quality. This paper matches firm-level export data with expert assessments of the quality of champagne producers to estimate the key parameters of that model. Quality monotonically increases firm-level prices, the probability of market entry, and export values. The estimated model--which calibrates the relative importance of firm-level quality and idiosyncratic demand--accurately predicts the average quality exported to each country. Simulations show that the data reject the polar alternatives where outcomes are based entirely on either quality or randomness. Copyright 2012, Oxford University Press.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (336)

Downloads: (external link)
http://hdl.handle.net/10.1093/restud/rdr030 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: QUALITY SORTING AND TRADE: FIRM-LEVEL EVIDENCE FOR FRENCH WINE (2009)
Working Paper: Quality Sorting and Trade: Firm-Level Evidence for French Wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
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:oup:restud:v:79:y:2012:i:2:p:609-644

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().