The Opportunity Costs of Entrepreneurs in International Trade

Timothy Kehoe, Pau 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: Firm heterogeneity; International trade; Span-of-control model; Income distribution (search for similar items in EconPapers)
JEL-codes: D31 D43 F12 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2016-08-01
New Economics Papers: this item is included in nep-bec and nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: 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:fip:fedmsr:533

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