Belke, Ansgar; Wagemester, Jan - In: CESifo economic studies : CESifo, a joint initiative of … 63 (2017) 3, pp. 270-294
We argue that, under certain conditions described by a sunk cost hysteresis model, firms consider exports as a substitute for domestic demand. This is valid also on the macroeconomic level where the switch from the domestic market to the export market and vice versa takes place in a smooth...
