This article examines the size and persistence of international deviations from the law of one price in an industry with search frictions. Cost differences lead foreign and domestic firms to price differently within countries. When local firms are more common in each country, there are large and...

In a closed economy general equilibrium model, Hopenhayn and Rogerson (1993) find large welfare gains to removing firing restrictions. We explore the extent to which international trade alters this result. When economies trade, labor market policies in one country spill over to other countries...

We decompose the change in the U.S. export share of GDP into an intensive and extensive margin. We then use a model of establishment export dynamics to infer the change in marginal and fixed trade costs from 1976 to 2002. We find the fall in tariffs and transport costs account for approximately...

We develop a model of establishment dynamics consistent with the establishment level heterogeneity in exporting and productivity to analyze the welfare consequences of trade reform. Specifically, we assume that firms face an up-front, sunk cost of entering foreign markets and a smaller...

We also study the dynamics of job turnover following an unanticipated cut in tariffs. In the transition to the new steady state, we find that job turnover temporarily rises as workers are reallocated from less productive non-exporters to more productive exporters. These increases in job turnover...

The collapse and rebound in U.S. international trade from 2008 to 2010 was quite stunning. Over this period, the fluctuations in international trade were bigger than the fluctuations in either production of or expenditures on traded goods. These relatively large fluctuations in international...