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What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features … of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade …
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What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features … of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade …
Persistent link: https://www.econbiz.de/10009490203
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Recent theoretical work on international trade emphasizes the importance of trade elasticity as the fundamental statistic needed to conduct welfare analysis. Eaton and Kortum (2002) proposed a two-step method to estimate this parameter, where exporter fixed effects are regressed on proxies for...
Persistent link: https://www.econbiz.de/10009736241