Crozet, Matthieu; Head, Keith; Mayer, Thierry - Centre d'études prospectives et d'informations … - 2009
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 …