The ABCs of Firm Heterogeneity When Firms Sort into Markets: The Case of Exporters.

We develop a novel methodology for disentangling the demand and cost drivers of firm heterogeneity when firms sort themselves into different markets, and we apply it to export status differences. Our methodology results in joint estimates of firm-level productivity and of markups in every market, wi...

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Publicado en:Journal of Political Economy Vol. 132; no. 4; pp. 1162 - 1209
Autores principales: Blum, Bernardo S., Claro, Sebastian, Horstmann, Ignatius, Rivers, David A.
Formato: Artículo
Publicado: University of Chicago Press Apr2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Apr2024
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      pub: University of Chicago Press
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        atl: The ABCs of Firm Heterogeneity When Firms Sort into Markets: The Case of Exporters.
      aug:
        au:
          Blum, Bernardo S.
          Claro, Sebastian
          Horstmann, Ignatius
          Rivers, David A.
        affil:
          University of Toronto
          Universidad de Los Andes, Chile
          University of Western Ontario
      su:
        Heterogeneity
        International markets
        Business enterprises
        Exporters
        Demand function
      sug:
        subj:
          Heterogeneity
          International markets
          Business enterprises
          Exporters
          Demand function
      ab: We develop a novel methodology for disentangling the demand and cost drivers of firm heterogeneity when firms sort themselves into different markets, and we apply it to export status differences. Our methodology results in joint estimates of firm-level productivity and of markups in every market, without imposing functional form restrictions on demand. We find that exporters, relative to nonexporters, (i) have flatter domestic demand curves—thicker domestic markets—and (ii) have higher demand conditional on productivity. Finally, (iii) these demand advantages translate to foreign markets, thereby leading to export status differences.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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