1 option
Quality, Variable Markups, and Welfare: A Quantitative General Equilibrium Analysis of Export Prices / Haichao Fan, Yao Amber Li, Sichuang Xu, Stephen R. Yeaple.
- Format:
- Book
- Author/Creator:
- Fan, Haichao.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w25611.
- NBER working paper series no. w25611
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Quality, Variable Markups, and Welfare
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2019.
- Summary:
- Modern trade models attribute the dispersion of international prices to physical and man-made barriers to trade, to the pricing-to-market by heterogeneous producers and to differences in the quality of output offered by firms. This paper presents a tractable general equilibrium model that incorporates all three of these mechanisms. Our model allows us to confront Chinese firm-level data on the prices charged and revenues earned within and across markets. We show that all three mechanisms are necessary to fit the distribution of prices and revenues across firms and markets. Accounting for endogenous quality heterogeneity across firms and markets is shown to be critical for the response of prices to trade and tariff shocks.
- Notes:
- Print version record
- February 2019.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.