I study the implications of endogenous productivity choices ("innovation") on the effects of trade liberalization. I … find that a model with innovation generates an elasticity of trade volumes to tariff reductions that is fifty percent … larger than models without innovation, and consistent in magnitude to empirical estimates. To show this, I develop a new …

credit are significantly smaller, more profitable, more liquid and of better credit quality; but hold fewer tangible assets …. Firms that use trade credit are larger, more liquid, of worse credit quality, and less likely to be a firm that primarily … liquidity and negatively related to credit quality and is lower at firms that primarily provide services. In general, these …

's producers to upgrade the quality of the goods that they export. The paper first documents two stylized facts regarding the …'s (2003) model of trade with heterogeneous firms by introducing endogenous quality choice. The model predicts that a reduction … in the import tariff induces an incumbent importer/exporter to increase the quality of its exports and to raise its …

". Productivity is modeled as is standard in the literature. Caliber is the ability to produce quality using few fixed inputs. While … there is no quality restriction to sell domestically, exporting requires the attainment of minimum quality levels. Compared … to single-attribute models of firm heterogeneity emphasizing either productivity or the ability to produce quality, our …

quality levels. In the new trade theory and in the neoclassical literature there is not a well-established methodology to … estimate good's quality in international trade; this contribution presents different methodologies starting from a review of … only by quality shifts but also by other cyclical and structural factors. To overcome these limitations and give a better …