The classic explanation for the persistence and volatility of real exchange rates is that they are the result of nominal shocks in an economy with sticky goods prices. A key implication of this explanation is that if goods in different sectors have different degrees of price stickiness then...

To Be Submitted Later

We present a general equilibrium model of the decisions of firms to innovate and to engage in international trade. We use the model to study the changes in aggregate productivity that arise as firms' exit, export, process- and product innovation decisions respond to a change in the marginal cost...

and strong reputation concerns.