Firm-level idiosyncratic policy distortions misallocate resources between firms, lowering aggregate productivity. Many environmental policies create such distortions; in particular, output-based intensity standards (which limit firms' energy use or emissions per unit of output) are easier for...

Firm-level idiosyncratic policy distortions lower aggregate productivity, especially if such distortions are correlated with firm productivity. Many environmental policies, such as energy intensity standards, exhibit this correlation. In contrast to the existing environmental literature...

International trade increases productivity; internal trade should too. The size and consequences of internal trade barriers are unfortunately not well known. Using unique Canadian data and multiple approaches to measure trade costs, we find internal trade barriers are large, especially for poor...

The positive link between international trade and productivity is well established. However, research on magnitude and consequences of internal trade barriers, which inhibit the efficient geographic distribution of production within a country, is limited. Unique data from Canada and China...

Agriculture in poor countries has low productivity, high employment, and negligible trade flows relative to other sectors. These facts motivate a multi-sector, open-economy view of international productivity differences. With a quantitative multi-country model featuring nonhomothetic...

Does trade within a country affect welfare and productivity? What are the magnitude and consequences of costs to such trade? To answer these questions, we exploit unique Canadian data to measure internal trade costs in a variety of ways – they are large, and vary across sectors and...