Trade and Prices with Heterogeneous Firms ∗

@inproceedings{Johnson2008TradeAP,
  title={Trade and Prices with Heterogeneous Firms ∗},
  author={R. Curtis Johnson},
  year={2008}
}
This paper estimates a heterogeneous firms trade model using disaggregate data on export values and prices. Prices contain information about differences in product quality across firms and countries that helps identify key mechanisms in the model. Examining withincountry variation in export prices across destination markets, I find that prices behave in a manner inconsistent with the benchmark model that ignores product quality differences across firms. In doing so, I demonstrate that export… CONTINUE READING
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