Product Differentiation, Multi-product Firms and Estimating the Impact of Trade Liberalization on Productivity

Volume: 79, Issue: 5, Pages: 1407 - 1451
Published: Sep 1, 2011
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
Volume
79
Issue
5
Pages
1407 - 1451
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