elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada … productivity. Given the estimated parameter values, we first decompose border effects into a pure border effect, relative and … Canada-US border on regional market aggregates such as wages, productivity, markups, the mass of varieties produced and …

-border versus foreign-affiliate sales. We find that for firms in our sample productivity is both a statistically significant and …

homogeneous firm model that is a special case of a heterogeneous firm model with a degenerate productivity distribution. Keeping … all structural parameters besides the productivity distribution the same, we show that the two models have different … quantitatively important (up to a few percentage points of GDP). Under the assumption of a Pareto productivity distribution, the two …

improve the business conditions in one country have negative productivity and welfare effects on the trading partner. Second …

improve the business conditions in one country have negative productivity and welfare effects on the trading partner. Second …

firms, and multiple asymmetric regions. Wages, productivity, consumption diversity, and markups across firms and markets are … by the Canada-US border. We find that Canadian average labor productivity increases by 8.03%, whereas US average labor … productivity rises by just 1.02%. Consumers’ exposure to market power falls sizably by up to 12.11% in the Canadian provinces, and …