Baldwin, Richard E.; Harrigan, James - 2007
, export unit values are positively related to distance. We show that every well-known multi-good general equilibrium trade … trade costs in explaining zeros, using the long-term decline in the relative cost of air shipment to identify a difference …-in-differences estimator. To match these facts, we propose a new version of the heterogeneous-firms trade model pioneered by Melitz (2003). In …