Russ, Katheryn N.; Valderrama, Diego - Federal Reserve Bank of San Francisco - 2009
We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … financial policy on the distribution of firm size, welfare, aggregate output, gains from trade, and the real exchange rate in a … effects on the extensive margin of trade, aggregate exports, and the real exchange rate. Increasing the degree of trade …