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Two-Sided Heterogeneity and Trade

Author

Listed:
  • Andrew B. Bernard

    (Tuck School of Business at Dartmouth, CEPR, and NBER)

  • Andreas Moxnes

    (University of Oslo and CEPR)

  • Karen Helene Ulltveit-Moe

    (University of Oslo and CEPR)

Abstract

This paper develops a multicountry model of international trade that provides a simple microfoundation for buyer-seller relationships in trade. We explore a rich data set that identifies buyers and sellers in trade and establish a set of basic facts that guide the development of the theoretical model. We use predictions of the model to examine the role of buyer heterogeneity in a market for firm-level adjustments to trade shocks, as well as to quantitatively evaluate how firms’ marginal costs depend on access to suppliers in foreign markets.

Suggested Citation

  • Andrew B. Bernard & Andreas Moxnes & Karen Helene Ulltveit-Moe, 2018. "Two-Sided Heterogeneity and Trade," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 424-439, July.
  • Handle: RePEc:tpr:restat:v:100:y:2018:i:3:p:424-439
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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