How exporters grow
Doireann Fitzgerald (Federal Reserve Bank of Minneapolis), Stefanie Haller (University College Dublin), Yaniv Yedid-Levi (University of British Columbia)
We document how export quantities and prices evolve after entry to a market. Controlling for marginal cost, and taking account of selection on idiosyncratic demand, there are economically and statistically significant dynamics of quantities, but no dynamics of prices. To match these facts, we estimate a model where firms invest in customer base through non-price actions (e.g. marketing and advertising), and learn gradually about their idiosyncratic demand. The model matches quantity, price and exit moments. Parameter estimates imply costs of adjusting investment in customer base, and slow learning about demand, both of which generate sluggish responses of sales to shocks.
Year of publication: |
[2017]
|
---|---|
Authors: | Fitzgerald, Doireann ; Haller, Stefanie ; Yedid-Levi, Yaniv |
Publisher: |
Dublin : UCD School of Economics, University College Dublin |
Subject: | Theorie | Theory | Nachfrage | Demand | Internationaler Markteintritt | International market entry | Export | Exportwirtschaft | Export sector | Werbung | Advertising | Unternehmenswachstum | Firm growth | Mark-up Pricing | Mark-up pricing | Absatz | Sales |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 44 Seiten) Illustrationen |
---|---|
Series: | Working paper series. - Dublin : [Verlag nicht ermittelbar], ZDB-ID 2094056-7. - Vol. WP17, 02 (January 2017) |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/175481 [Handle] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011594182