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This paper examines how prices, markups and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi-product rms. This approach does not require assumptions on the market structure or demand curves faced by rms, nor assumptions on how rms allocate their inputs across products. We exploit(More)
New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from a large developing economy—India—to investigate the relationship between declines in trade costs, the imports of intermediate inputs and domestic firm product scope. We estimate substantial static gains from trade through access to new imported(More)
This paper explores how reductions in tari¤s on imported inputs and …nal goods a¤ect …rm productivity by exploiting the special tari¤ treatment that processing …rms apply on imported inputs as opposed to those of non-processing …rms. Highly disaggregated Chinese transaction-level trade data and …rm-level production data from 2000 to 2006 are used to(More)
We determine how time delays affect international trade, using newly-collected data on the days it takes to move standard cargo from the factory gate to the ship in 98 countries. We estimate a difference gravity equation that controls for remoteness, and find significant effects of time costs on trade. We find that each additional day that a product is(More)
This paper establishes a causal effect of product market competition on various characteristics of organizational design. Using a unique panel dataset on firm hierarchies of large U.S. firms (1986-1999) and a quasi-natural experiment (trade liberalization), we find that increasing competition leads firms to flatten their hierarchies, i.e., (i) firms reduce(More)
Recent theoretical work predicts that an important margin of adjustment to deregulation or trade reforms is the reallocation of output within firms through changes in their product mix. Empirical work has accordingly shifted its focus towards multi-product firms and their product mix decisions. Existing studies have however focused exclusively on the U.S.(More)
Firms face competing needs to expand product variety and reduce production costs. Trade policy affects firm investments in product variety and production processes differently. Access to larger markets enables innovation to reduce costs. Although firm scale increases, foreign competition reduces markups. Firms react by narrowing their product varieties to(More)
Distributed multi-player games use dead reckoning vectors to intimate other (at a distance) participating players about the movement of any entity by a controlling player. The dead reckoning vector contains the current position of the entity and the velocity components. When a participating player receives a vector, traditionally it puts the entity at the(More)
  • Carsten Eckely, Leonardo Iacovonez, Beata Javorcikx, Peter Neary, Matilde Bombardini, Banu Demir +2 others
  • 2010
We develop a new model of multi-product …rms which invest to improve both the quality of their individual products and of their brand. Because of ‡exible manufacturing, products closer to …rms'core competence have lower costs, so they produce more of them, and also have higher incentives to invest in their quality. These two e¤ects have opposite(More)