Prices are typically used as proxies for countries' export quality. I relax this strong assumption by exploiting both price and quantity information to estimate the quality of products exported to the U.S. Higher quality is assigned to products with higher market shares conditional on price. The...

This paper analyzes how access to imported inputs affects firms in developing countries, where domestically produced high-quality inputs are relatively costly. We build an O-Ring type model with quality complementarity across input tasks, ranking tasks by their quality sensitivity. Because...

This paper examines how the costs of adopting new technology are different from those of expanding capital stock by utilizing the data on 20 U.S. manufacturing industries from 1983 to 1998. Using the Generalized Method of Moment (GMM), I estimate a dynamic factor demand model in which the...