Micro to Macro: Optimal Trade Policy With Firm Heterogeneity
(2020)
Journal Article
Costinot, A., Rodríguez-Clare, A., & Werning, I. (2020). Micro to Macro: Optimal Trade Policy With Firm Heterogeneity. Econometrica, 88(6), 2739-2776. https://doi.org/10.3982/ECTA14763
The empirical observation that "large firms tend to export, whereas small firms do not" has transformed the way economists think about the determinants of international trade. Yet, it has had surprisingly little impact on how economists think about t... Read More about Micro to Macro: Optimal Trade Policy With Firm Heterogeneity.