We explore the quantitative importance of pricing complementarities in the context of a menu cost model of price adjustment. Using super-market scanner data, we document new evidence on the co-movement of prices and market shares at the product level, suggesting that changes in prices and market...

We study the response of factor allocation and the skill premium to trade liberalizations in a model that combines exogenous determinants of comparative advantage--that result from sectoral productivity and factor endowment differences across countries--with endogenous determinants of...

We present a general equilibrium model of the decisions of firms to innovate and to engage in international trade. We use the model to study the changes in aggregate productivity that arise as firms' exit, export, process- and product innovation decisions respond to a change in the marginal cost...

How do changes in the economic environment such as reductions in international trade costs or reductions in firms innovation costs impact aggregate productivity? More generally, how do changes in economic policies that affect market size, market structure, and the costs and benefits to firms of...

Inequality is shaped by complementarities between worker characteristics and the characteristics of technology, capital, firms, and industries. International trade affects the state of technology, the stocks of different types of capital, and the allocation of labor across firms and industries....

We study the impact of the increase in trade in manufacturing on the synchonization of international business cycles