What is the effect of imports on productivity? To answer this question, we estimate a structural model of producers … productivity through expanding variety as well as improved input quality. The model leads to a production function where the total … factor productivity of a firm depends on the share of inputs imported. To estimate this import-augmented production function …

a benchmark stochastic growth model, by assuming that firms observe output but hours worked and productivity are …

and disembodied shocks to productivity and large technological innovations, which are embodied into new vintages of the …

We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity … their future productivity when making an irreversible investment to enter the domestic market. In addition to the sunk entry … productivity, sunk entry costs, and trade costs induce firms to enter and exit both their domestic and export markets, thus …