We examine the effect of exchange-rate misalignments on competition in the market for large commercial aircraft. This market is a duopoly where players compete in dollar-denominated prices while one of them, Airbus, incurs costs mostly in euros. We construct and calibrate a simulation model to...

The Japanese yen in 2012 remains 25 percent above its value in 2007. Exports, industrial production, and stock prices crashed after 2007 and have yet to regain their pre-crash values. This paper investigates the contribution of the yen appreciation to this economic disaster. Evidence from...

This paper is the first to use the Banque de France database on firm-level exports and imports of services. We first show that firms trading services are bigger, more productive and pay higher wages than the purely domestic ones. Second, exports are very concentrated among a few numbers of...

Recent findings in international trade using detailed firm level surveys emphasize the microeconomic effects of trade liberalization episodes. A unilateral trade reform has two opposite effects on firms’ export patterns: (i) expansion of export opportunities for foreign firms exporting to that...

Firm-level regressions show that Champagne producers that receive better ratings from wine guides also export to more markets, charge higher prices, and sell more in each market. Our method corrects for a severe selection bias predicted by the model. By using direct measures of quality, we can...

This paper presents a theoretical discussion and an empirical investigation of the impact of distance on the spatial pricing policy of exporting firms. The theoretical part points out the importance of transport costs formulation to determine how distance impacts fob prices. Assuming additive or...

We employ a unique dataset to study the impact of foreign bank ownership and mode of entry on banks’ lending rates to transparent and opaque borrowers. We find that greenfield banks charge lower lending rates on average and we test for two hypotheses that can explain the lower cost of credit...