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framework and firm-level prices and quantities data for detailed products allowing us to both measure demand, and its changes …. This in turn allows us to measure how changes in TFP-Q, demand and markups ultimately affected revenue TFP, as well as …-recession is due to both a weakening of demand and a decreasing TFP-Q pushing down sales, markups, revenue TFP and labour …
Persistent link: https://www.econbiz.de/10012387534
We develop a new econometric framework that simultaneously allows recovering heterogeneity in demand, TFP and markups … quantify TFP, demand and markups and show how they are correlated among them, across time and with measures obtained from other …
Persistent link: https://www.econbiz.de/10011417711
We analyze the demand and supply characteristics of the Indian telecommunications market, in order to assess the … and demand characteristics, using a small time-series-cross-section dataset on Indian States. We suggest that the price … elasticity of demand for mainlines might be sensibly higher than the levels usually found in developed countries, while the …
Persistent link: https://www.econbiz.de/10008806687
This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory...
Persistent link: https://www.econbiz.de/10009764401
We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality. Once established, firms compete for market shares, selling to consumers with heterogeneous tastes for quality. The equilibrium of the pricing game exists and is unique within...
Persistent link: https://www.econbiz.de/10011547909
This paper introduces quality innovations with endogenous sunk costs in a heterogeneous firm model of international trade and derives implications for the gravity equation. The model predicts that the effect of fixed costs on exports and on the share of exporters is lower in industries with a...
Persistent link: https://www.econbiz.de/10011536262
We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...
Persistent link: https://www.econbiz.de/10011450700
Uncertainty about the level of demand is thought to influence irreversible capacity decisions. This paper examines some … capacity sufficient to supply positive local demand shocks. In the presence of uncertain demand, firms may choose to serve … the average level of excess capacity and demand volatility only for coastal areas. An increase in demand volatility is …
Persistent link: https://www.econbiz.de/10008696743
This paper analyzes the generalized quality differentiation model in multi-sided markets with positive externalities, which leads to new insights into the optimal pricing structure of the firm. We find that quality differentiation for users on one side affects not only the side involving...
Persistent link: https://www.econbiz.de/10012612674
Recent trade agreements have shifted their focus to non-tariff barriers such as regulations and product standards, which have been traditionally treated as pure domestic policies. The imposition of such standards reallocates production from small to large, high quality firms. We model...
Persistent link: https://www.econbiz.de/10012509336