This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during trade liberalization. Firm productivity in a given product is modeled as a combination of firm-level “ability” and firmproduct- level “expertise”, both of which are stochastic and...

CHAPTER 1: The Great Russian Devaluation and Labor DemandDoes a greater degree of integration into world markets lead to a more elastic demand for labor? Often referred to as the Rodrik hypothesis, this question, despite being important from both theoretical and applied policy standpoints, is...