Sector and importer determinants of prices for traded intermediates
Abstract
While the literature on traded goods prices emphasizes final goods prices and related consumer theory to explain variation in goods prices with importer characteristics, trade in intermediates actually constitutes about two thirds of total trade. We propose a mechanism for explaining variations in the prices of intermediates as a function of importer characteristics, wherein production is vulnerable to failure and the probability of failure...
Paper Details
Title
Sector and importer determinants of prices for traded intermediates
Published Date
May 12, 2020
Volume
53
Issue
2
Pages
720 - 742
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