A Two-Regime Model of Exports: U.K. Manufactures, 1980â€“1996
Practically all existing studies of British export performance either model export supply in an ad hoc manner without accounting for any interaction between it and export demand and/or impose a simplifying homogeneity assumption on the firms being modeled. In this article, a new two-regime model, which addresses both issues, is described and applied to U.K. manufactured exports. The results obtained are supportive of the model and are in a number of respects better than those obtained when a more traditional export model is used instead. Copyright Kluwer Academic Publishers 2001
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