Eaton, Jonathan; Kortum, Samuel; Kramarz, Francis - 2022
general equilibrium model of firm-to-firm matching that builds on this insight to separate the roles of iceberg costs and … matching frictions in gravity. In the cross section, we find matching frictions as important as iceberg costs in impeding trade … 2004 expansion of the European Union, reduced iceberg costs and reduced matching frictions contributed equally to the …