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Endogenous trade participation with price rigidities

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  • Imura, Yuko

Abstract

This paper investigates the interaction of endogenous export participation and nominal rigidities and its implications for the dynamics of intensive and extensive margins of trade. I develop a two-country dynamic stochastic general equilibrium model wherein firms make state-dependent decisions on entry and exit in the export market, and where price adjustments are staggered across firms and time.

Suggested Citation

  • Imura, Yuko, 2016. "Endogenous trade participation with price rigidities," Journal of International Economics, Elsevier, vol. 100(C), pages 14-33.
    • Handle: RePEc:eee:inecon:v:100:y:2016:i:c:p:14-33
    DOI: 10.1016/j.jinteco.2016.01.007
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    More about this item

    Keywords

    Exporter entry and exit; Nominal rigidities; Firm heterogeneity; International transmission;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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