Mrázová, Monika; Neary, J. Peter; Parenti, Mathieu - In: Econometrica 89 (2021) 4, pp. 1753-1788
We characterize the relationship between the distributions of two variables linked by a structural model. We then show that, in models of heterogeneous firms in monopolistic competition, this relationship implies a new demand function that we call “CREMR” (Constant Revenue Elasticity of...