This paper investigates the implications of endogenous trade participation for international business cycles, trade … traded goods in this model differ in their productivities, trade status and prices. At the aggregate level, quantitative … this result to the micro-level price stickiness present in my model but absent in existing models of endogenous trade …

and wages as well as the gains from trade using a general equilibrium model with heterogeneous firms. Firm-level prices … competition in input and product markets. Opening product markets up to trade reallocates market shares in product and labor … gains from trade. Trade has significantly larger effects on firms' markups than on their markdowns. Nevertheless, because of …

Standard new trade models depict producers as heterogeneous in total factor productivity. In this paper, I adapt the … Eaton and Kortum (2002) model of international trade to incorporate tradable intermediate goods and producer heterogeneity … in value-added productivity. In equilibrium, this yields a positive relationship between the international trade …

aggregate regression specification that is consistent with bilateral trade flows micro-founded by the gravity equation. This … for this prediction from annual trade flow data. The difference between elasticities estimated on the bilateral and …

This paper provides a systematic, quantitative analysis of the short-run and long-run effects of various trade …