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• W3122654369 abstract "Abstract This article analyzes the role of credit frictions in a trade model where producers differ in their capabilities to conduct process and quality innovations and require external finance for investments. Accounting for cost‐based and quality‐based sorting of firms in a unified framework allows us to demonstrate that the reactions of prices and commonly used productivity measures do not necessarily reflect welfare implications. Credit frictions lead to distortions through aggravated access to finance and endogenous price adjustments so that the responses of quantity‐based and revenue‐based productivity differ substantially. In counterfactual scenarios, we show that these differential effects are quantitatively important." @default.
• W3122654369 created "2021-02-01" @default.
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• W3122654369 date "2023-06-21" @default.
• W3122654369 modified "2023-10-17" @default.
• W3122654369 title "CREDIT CONSTRAINTS, ENDOGENOUS INNOVATIONS, AND PRICE SETTING IN INTERNATIONAL TRADE" @default.
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• W3122654369 doi "https://doi.org/10.1111/iere.12651" @default.
• W3122654369 hasPublicationYear "2023" @default.
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