A central theme of international trade research has been the impact of trade liberalization on productivity. Early literature on this theme points out that trade liberalization brings resource/organizational adjustment across industries and this adjustment enhances productivity. A traditional...

The article offers measures of own and cross cost pass-through in a structural framework. Unlike the traditional reduced-form analysis used in the previous literature, our approach is applicable in situations where firm marginal cost data are unobserved. The empirical value of the model is...

The endogeneity of retail market power arises in the retail pricing equation due to the correlation between margins and unobserved cost components. Nevertheless, it has long been ignored in the equilibrium analysis of retail behavior. We address the issue via a control function approach in a new...

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling...

This study allows for variation of trade costs among regions, since a single trade costs measure may not appreciate the large number and diverse regions of the United States through which trade in food manufacturing occurs.