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The Melitz model highlights the importance of the extensive margin (the number of firms exporting) for trade flows. Using the World Bank’s Exporter Dynamics Database (EDD) featuring firm-level exports from 50 countries, we find that around 50% of variation in exports is along the extensive...
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Micro data over the life cycle shows two different patterns of consumption of housing and non-housing goods: the … consumption profile of non-housing goods is hump-shaped while the consumption profile for housing first increases monotonically … the accumulation of housing assets early in life, while transaction costs are crucial in generating the slow downsizing of …
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