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How large are the estimated gains from trade from a reduction in trade costs in the heterogeneous firms Melitz (M) model compared with the Armington (A) and Krugman (K) models? Surprisingly little is known beyond the one-sector model. This paper analyzes this question using a global trade model...
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reflect physical productivity. Within-firm productivity changes from export entry are computed using a difference …-in-differences matching estimator. The findings show that, over a six-year period, the difference in productivity growth between export … international markets have largely been understated in the export-productivity empirical literature. This difference in productivity …
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-distributed firm productivity and fixed costs of exporting, predicts that, conditional on the fixed costs of exporting, all variation … lognormal distribution of firm productivity allows the Melitz model to successfully match the role of the intensive margin … methods and the EDD, a generalized Melitz model with a joint lognormal distribution for firm productivity, fixed costs and …
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