We study the role of firm heterogeneity and imperfect competition for global production networks and the gains from trade. We develop a quantifiable trade model with two-sided firm heterogeneity, matching frictions, and oligopolistic competition upstream. More productive buyers endogenously...

This paper presents novel evidence of price discrimination, using prices of identical goods in 28 countries. I explain the observed phenomenon via non-homothetic preferences, in a model of trade with product differentiation and firm productivity heterogeneity. The model brings theory and data...

This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a...

The new era of geopolitics and geoeconomy significantly alters the economic landscape and the operating environment. It is already clear that industrial policies and barriers to international trade increasingly influence the location of investment decisions. These trends challenge the...

Locating substantial parts of the production process in developing and emerging economies, many firms face an increasing demand by stakeholders for Corporate Social Responsibility (CSR) along their value chains. Contractual incompleteness between firms and their suppliers at different stages of...

The new era of geopolitics and geoeconomy significantly alters the economic landscape and the operating environment. It is already clear that industrial policies and barriers to international trade increasingly influence the location of investment decisions. These trends challenge the...

One of the main challenges when analyzing multinational firms (MNEs) is that this group is comprised of a rich variety of firms engaged in a spectrum of activity. In response to the separate models describing one type of MNE or another, the Knowledge Capital model was developed in order to...