This paper presents a tractable model of acquisitions with heterogeneous firms. Acquisitions improve aggregate productivity by transferring productive assets from the least efficient firms to more efficient firms. However, these acquiring firms are in a mid-range of productivity, whether...

One of the key findings in this case deals with the appropriate method to determine material injury when imported products are subject to simultaneous anti-dumping and countervailing duty (CVD) investigations. Along with addressing a number of legal issues concerning CVD investigations, the...

Firms play a critical role in the global economy. In this paper, we survey the behavior of firms in the international economy, both in theory and in the data. We first summarize the key empirical facts that motivate the study of firms in trade. Then, we detail recent theoretical developments on...

This paper examines the liberalization of a common tariff when imported varieties vary in quality and cost. Varieties of higher quality and/or lower cost (a) are imported at lower absolute demand elasticities and (b) earn higher revenues. By virtue of larger demand elasticities, low revenue...

In this paper, we study the role of vertical product differentiation in the decision to allocate production between domestic and foreign plants. To do so, we examine the first wave of light-truck offshoring to Mexico that occurred due to substantially lower post-NAFTA trade barriers and a...