This paper sets out a basic heterogeneous-firms trade model that is closely akin to
Melitz (2003). The positive and normative properties of the model are studied in a
manner intended to highlight the core economic logic of the model. The paper also
studies the impact of greater openness at the firm-level and aggregate level, focusing on
changes in the number and type of firms, trade volumes and prices, and productivity
effects. The normative effects of liberalisation are also studied and here the paper
focuses on aggregate gains from trade, and income redistribution effects, showing inter
alia that the model is marked by a Stolper-Samuelson like effect.
A number of empirically testable hypotheses are also developed. These concern the
impact of greater openness on the firm-level trade pattern, the variance of unit-prices,
the stock market valuation of firms according to size, and the lobbying behaviour by
size. 【文件下载】
Melitz (2003). The positive and normative properties of the model are studied in a
manner intended to highlight the core economic logic of the model. The paper also
studies the impact of greater openness at the firm-level and aggregate level, focusing on
changes in the number and type of firms, trade volumes and prices, and productivity
effects. The normative effects of liberalisation are also studied and here the paper
focuses on aggregate gains from trade, and income redistribution effects, showing inter
alia that the model is marked by a Stolper-Samuelson like effect.
A number of empirically testable hypotheses are also developed. These concern the
impact of greater openness on the firm-level trade pattern, the variance of unit-prices,
the stock market valuation of firms according to size, and the lobbying behaviour by
size.