Advanced Search
MyIDEAS: Login

'Distorted gravity: The intensive and extensive margins of international trade' revisited ; an application to an intermediate Melitz model

Contents:

Author Info

  • Prehn, Sören
  • Brümmer, Bernhard
Registered author(s):

    Abstract

    With the extension of the standard Melitz Model from Ahn et al. [2011], the important role of intermediaries in facilitating trade is now recognized. In this paper, we are going to expand Chaney's [2008] approach to an Intermediate Melitz Model. By researching if Chaney's results still apply for an Intermediate Melitz Model, main results of Chaney are confirmed for the direct export model, but this is not so for the indirect export mode. Here, the elasticity of substitution still dampens the extensive margins; however, whether the dampening effect on the extensive margin still dominates the magnifying effect on the intensive margin is ambiguous. Also, the elasticities of trade ows are no longer larger, but rather smaller than in the Krugman Model. All results are economically meaningful. --

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://econstor.eu/bitstream/10419/54747/1/682494542.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE) in its series DARE Discussion Papers with number 1109.

    as in new window
    Length:
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:zbw:daredp:1109

    Contact details of provider:
    Postal: Platz der Göttinger Sieben 5, D-37073 Göttingen
    Web page: http://www.uni-goettingen.de/en/18500.html
    More information through EDIRC

    Related research

    Keywords: international trade; Intermediate Melitz Model; firm heterogeneity; elasticities of trade flows; extensive and intensive margins;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    2. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
    3. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, vol. 84(1), pages 73-85, May.
    4. Matthew T Cole, 2011. "Distorted Trade Barriers," Working Papers 201105, School Of Economics, University College Dublin.
    5. Irarrazabal, Alfonso & Moxnes, Andreas & Opromolla, Luca David, 2009. "The Margins of Multinational Production and the Role of Intra-firm trade," CEPR Discussion Papers 7145, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:zbw:daredp:1109. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.