We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products … sold in those destinations. In response to positive demand shocks, those French firms skew their export sales towards their … multiproduct firms and derive the specific demand conditions needed to generate these product-mix reallocations. These demand …

-entry dynamics of quantities, but no post-entry dynamics of markups. This suggests that shifts in demand play an important role in … successful entry, but that firms do not use dynamic manipulation of markups as an instrument to shift demand. We structurally … advertising to acquire new customers and thereby shift demand and increase sales. In the second, they use temporarily low markups …

This paper develops a theory of expectations-driven business cycles based on learning. Agents have incomplete knowledge … series is captured, unlike in standard models. Inherited from real business cycle theory, the benchmark model suffers a …

network as valuable to serve independently, increasing the surplus generated by a foreign acquisition. From the theory we …

demand shock: it increases output, employment and inflation in the short run and has no effects in the long run. The dynamics …-run volatility due to demand shocks, in line with existing time-series evidence. The paper also develops a simple method to solve …