considered an indicator of either information flow or uncertainty. We show in a stylized model economy that both views suggest … market, volatility reflects information (uncertainty). We introduce a simultaneous time-varying coefficient model, where …

prices to cash ows and growth opportunities. Firms with more liquid stocks are expected to hold more cash, the opposite of … the prediction from a standard information asymmetry perspective on stock liquidity. The effect should be amplifed by … information asymmetry, inventory risks, and transaction costs …

prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …

, which contains detailed information on firm domestic prices, marginal costs, and competitor prices. The rare features of … estimate of firms' price responses to changes in prices of their competitors. We develop a general framework and an empirical …, that these findings have important implications for shaping the response of domestic prices to international shocks. …