The Opportunity Costs of Entrepreneurs in International Trade
We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs’ forgone wage in the span-of-control model.
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|Date of creation:||Aug 2016|
|Publication status:||published as Timothy J. Kehoe & Pau S. Pujolàs & Kim J. Ruhl, 2016. "The opportunity costs of entrepreneurs in international trade," Economics Letters, vol 146, pages 1-3.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- repec:hrv:faseco:4784031 is not listed on IDEAS
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