Product Differentiation, Multi-product Firms and Estimating the Impact of Trade Liberalization on Productivity
Abstract
This paper studies whether removing barriers to trade induces efficiency gains for producers. Like almost all empirical work which relies on a production function to recover productivity measures, I do not observe physical output at the firm level. Therefore, it is imperative to control for unobserved prices and demand shocks. I develop an empirical model that combines a demand system with a production function to generate estimates of...
Paper Details
Title
Product Differentiation, Multi-product Firms and Estimating the Impact of Trade Liberalization on Productivity
Published Date
Sep 1, 2011
Journal
Volume
79
Issue
5
Pages
1407 - 1451
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