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dc.contributor.authorAGUR, Itai
dc.date.accessioned2007-02-02T10:41:02Z
dc.date.available2007-02-02T10:41:02Z
dc.date.issued2006
dc.identifier.issn1725-6704
dc.identifier.urihttps://hdl.handle.net/1814/6683
dc.description.abstractRecent empirical work identies two main channels through which consumers benefit from trade. Trade liberalization lowers prices, while it raises product variety. This paper develops the first model that connects both channels and interprets their interaction. It shows that heterogeneity in firm productivity is the source behind both. Upon liberalization efficient exporters enter, pushing out the least efficient domestic firms. Two countervailing forces emerge, both stylized facts. Liberalization leaves a more concentrated market. But exporters offer more variety than the firms that they replace. Remarkably, total variety unambiguously increases. Exploration of comparative statics leads to an intuitive explanation.en
dc.format.extent211795 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2006/38en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectTradeen
dc.subjectFirm selectionen
dc.subjectProduct Varietyen
dc.subjectHeterogeneous firmsen
dc.subjectF12en
dc.subjectF15en
dc.subjectL11en
dc.titleFirm Heterogeneity and the Two Sources of Gains from Tradeen
dc.typeWorking Paperen
dc.neeo.contributorAGUR|Itai|aut|
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