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• W2168174002 abstract "Quantifications of gains from trade in heterogeneous firm models assume that productivity is Pareto distributed. Replacing this assumption with log-normal heterogeneity retains some useful Pareto features, while providing a substantially better fit to sales distributions-especially in the left tail. The cost of log-normal is that gains from trade depend on the method of calibrating the fixed cost and productivity distribution parameters. When set to match the size distribution of firm sales in a given market, the log-normal assumption delivers gains from trade in a symmetric two-country model that can be twice as large as under the Pareto assumption." @default.
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• W2168174002 date "2014-05-01" @default.
• W2168174002 modified "2023-10-06" @default.
• W2168174002 title "Welfare and Trade without Pareto" @default.
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• W2168174002 doi "https://doi.org/10.1257/aer.104.5.310" @default.
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