This article discuss the market conditions prevailing when the merger between Anheuser-Busch InBev and Grupo Modelo (ABI/Modelo) was authorized in 2013. I analyze the cointegration of beer prices in the U.S. and Mexican markets from 2002 to 2012. The cointegration model shows an asymmetric...

This paper examines the determinants of intra-firm trade in U.S. imports using detailed country-productdata. We create a new measure of product contractibility based on the degree of intermediation in internationaltrade for the product. We find important roles for the interaction of country and...

This paper develops a trade model with firm-specific quality heterogeneity, limit pric-ing, and an endogenous distribution of markups. Exposure to trade induces only thefirms producing high-quality (high-price) products to enter the export markets, whereasfirms producing low-quality (low-price)...