Bergin, Paul R.; Glick, Reuven - Federal Reserve Bank of San Francisco - 2005
This paper advocates a new way of thinking about goods trade in an open economy macro model. It develops a simple … method for analyzing trade costs that are heterogeneous among a continuum of goods, and it explores how these costs determine … the endogenous decision by a seller of whether to trade a good internationally. This way of thinking offers new insights …
