Bernard, Andrew B.; Redding, Stephen; Schott, Peter K. - London School of Economics (LSE) - 2005
aggregation problem introduces a bias into standard measures of firm productivity. We develop a theoretical model of heterogeneous … in product mix across firms, and the implications of this bias for identifying firm and industry responses to exogenous … policy shocks such as deregulation. More generally, we demonstrate that product switching gives rise to a richer set of …