. The authors find that the tariff equivalent of these fixed costs is nearly 30 percentage points. They use the calibrated … model to estimate the effect of reducing tariffs on welfare, trade, and export participation. The authors find sizeable … the welfare gain to trade reform. The authors also find simpler trade models that abstract from these export dynamics …

then used to estimate the effect of reducing tariffs on welfare, trade, and export participation. The authors find sizeable … model without fixed costs. However, they also find that comparisons of steady state consumption understate the welfare gains … to trade reform in models with fixed costs and overstate the welfare gains in models without fixed costs. With fixed …

. The welfare analysis confirms the view that you can't have too much entry …