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• W4382679941 abstract "In benchmark trade models that feature a constant trade elasticity, bilateral exports vary entirely on the intensive margin (exports per firm) or entirely on the extensive margin (number of firms). Our empirical analysis documents that roughly one-half of this variation occurs along each margin, implying that the trade elasticity is not constant. We estimate a generalized Melitz model with a joint log-normal distribution for firm productivity, fixed costs, and demand shifters. Using exact-hat algebra, we quantify how trade costs affect trade flows and welfare. Welfare effects are similar to those in the Melitz-Pareto model, but implied trade flows differ significantly. (JEL D22, D24, D43, F12, F14, L13)" @default.
• W4382679941 created "2023-07-01" @default.
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• W4382679941 date "2023-07-01" @default.
• W4382679941 modified "2023-10-16" @default.
• W4382679941 title "The Intensive Margin in Trade: How Big and How Important?" @default.
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• W4382679941 doi "https://doi.org/10.1257/mac.20200269" @default.
• W4382679941 hasPublicationYear "2023" @default.
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