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Truncated productivity distributions and the intensive trade margin

Author

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  • Coughlin, Cletus C.
  • Bandyopadhyay, Subhayu

Abstract

We derive a novel analytical relationship to show that for an upper truncated Pareto distribution average firm exports fall with variable trade costs and rise with the truncation limit. We extend the analysis to consider truncated lognormal and Fréchet distributions.

Suggested Citation

  • Coughlin, Cletus C. & Bandyopadhyay, Subhayu, 2020. "Truncated productivity distributions and the intensive trade margin," Economics Letters, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s016517652030358x
    DOI: 10.1016/j.econlet.2020.109596
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    References listed on IDEAS

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    Cited by:

    1. Defever, Fabrice & Riaño, Alejandro, 2022. "Firm-destination heterogeneity and the distribution of export intensity," Economics Letters, Elsevier, vol. 219(C).

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    More about this item

    Keywords

    Productivity distributions; Heterogeneous firms; Intensive margin;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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