Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export … of export shares from the most to the least productive incumbents. Greater skewness of the demand distribution and …

Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export … well as inventory and per shipments costs. Using a cross section of monthly firm-product-destination level French export … uncertainty by reducing their sales and, for a given export volume, by reducing their number of shipments and increasing their …

size of their export shipments. In our inventory model, transportation costs and optimal shipment frequency are determined …-product-destination level French export data we show that, in line with the predictions of the model, firms adjust on both margins for market … convex marginal cost function. Firms adjust to increased uncertainty by reducing their sales and, for a given export volume …