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There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade … only form of trade restrictions. Moreover, a standard assumption is that firms differ across marginal cost, yet empirical … in trade restrictions, a necessary step towards studying strategic trade policy. In addition, I highlight the differences …
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In this paper we use a model of vertical product differentiation to cast doubt on the general validity of the import demand function as specified in macroeconomic models. The empiricai importance of our theoretical concerns is then examined with the aid of two hypotheses. According to the first...
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export decision. It shows that theoretically, whatever the form of preferences, firms that start exporting invest more and … predictions of the quadratic preferences model. -- Export Decision ; Investment ; Firm Heterogeneity …
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