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Recently a small and growing empirical literature has attempted to analyze the role that quality plays in our … the distribution of apparel quality within Denmark, and demonstrate the firm-level mechanisms that induced the observed … aggregate changes. In particular, we show that the quality ladder tightens in response to trade shocks as initially low quality …
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model. By using direct measures of quality, we can recover estimates of parameters from a Melitz-based model of … heterogeneous firms. We then regress averages of the quality, price, and quantity shipped to a country on measures of its … attractiveness and entry costs. Champagne exhibits quality-sorting: more attractive markets tend to have lower average qualities and …
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, which allows for quality differentiation, uses very general assumptions to show that intermediated exporters may contribute …
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