I consider how heterogeneity in capital goods affects international trade patterns, and I show a novel source of comparative advantage: the magnitude of capital goods heterogeneity. Capital goods are heterogeneous in their vintage and productivity, and due to capacity constraints, only...

The paper makes two points as to how standard international trade theory is modified when an endogenous degree of capital utilization is introduced. The first point is that, if capital utilization during a period is less than full because of an exogenous time-dependent variation in productivity...

In this paper we propose a novel method for the price-cost markup estimation and study the relationship between export intensity and the markup. We impose much less restrictive identifying assumptions on technology and adjustment frictions compared to previous studies and use Swedish firm-level...