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, Melitz and Yeaple in a model that explains the decision of heterogeneous firms to serve foreign markets either trough exports …
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We derive exact conditions relating the distributions of firm productivity, sales, output, and markups to the form of demand in monopolistic competition. Applications include a new “CREMR” demand function (Constant Revenue Elasticity of Marginal Revenue): it is necessary and sufficient for...
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and the goods structure of German exports and discusses their medium-term prospects. …
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