We study cost pass-through in the U.S. automobile market using a framework that incorporates the effects of cost changes on input decisions. We find that accounting for firms' factor-market decisions significantly increases measured cost pass-through, although we reject the hypothesis of full...

This paper studies U.S. overseas assembly imports to identify whether factors related to information or search costs appear to condition outsourcing decisions. The data for 1991-2000 show that U.S. overseas assembly imports were characterized by incomplete pass-through of production and trade...

Recent theories of economic geography suggest that firms in the same industry may be drawn to the same locations because proximity generates positive externalities or 'agglomeration effects.' Under this view, chance events and government inducements can have a lasting influence on the...

The manipulation of transfer prices changes the relative tax burdens multinational firms face in their different countries of operation. Transfer price manipulation also triggers changes in the tariffs that are levied on intra-company imports. For this reason, when tax rates change, as they did...

To understand the effects of trade policy uncertainty on firm-level export decisions, we study firm-product data on Chinese exports to the U.S. in the years surrounding China’s 2001 WTO accession. Following predictions based on a model of heterogeneous firms, we provide empirical evidence that...

This paper analyzes the economic effects of content-based import tariffs China imposed on imported auto parts. While China's policy penalized any firm that assembled cars with less than 60% Chinese content, the policy was most likely to affect foreign-affiliated firms who were more likely to...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>We exploit information on the geographic, product and trader characteristics of China's 1997–2009 exports to examine how the evolving city-industry presence of multinational firms influenced the quality, frequency and survival of new export transactions by...</p>