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The Opportunity Costs of Entrepreneurs in International Trade

Timothy Kehoe (), Pau Salvador Pujolas () and Kim Ruhl ()

No 533, Staff Report from Federal Reserve Bank of Minneapolis

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 wage 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)
New Economics Papers: this item is included in nep-bec and nep-cse
Date: 2016-08-01
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Journal Article: The opportunity costs of entrepreneurs in international trade (2016) Downloads
Working Paper: The Opportunity Costs of Entrepreneurs in International Trade (2016) Downloads
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