The Theoretical Equivalent of Empirically Measurable Exporter Productivity when Firms are Heterogeneous

TY - UNPB

T1 - The Theoretical Equivalent of Empirically Measurable Exporter Productivity when Firms are Heterogeneous

AU - Schröder, Philipp

AU - Sørensen, Allan

PY - 2010

Y1 - 2010

N2 - The marginal costs based representation of firm productivity in the Melitz [Melitz, M.J., 2003. The impact of trade on intra-industry reallocations and aggregate industry productiv- ity. Econometrica 71 (6), 1695-1725] model, predicts positive exporter productivity premia. We show that this prediction is reversible when computing the theoretical equivalent of the empirically measurable productivity expression (value added per worker) in the model. The paper discusses implications of this finding for empirical research.

AB - The marginal costs based representation of firm productivity in the Melitz [Melitz, M.J., 2003. The impact of trade on intra-industry reallocations and aggregate industry productiv- ity. Econometrica 71 (6), 1695-1725] model, predicts positive exporter productivity premia. We show that this prediction is reversible when computing the theoretical equivalent of the empirically measurable productivity expression (value added per worker) in the model. The paper discusses implications of this finding for empirical research.

KW - Intra-industry trade, firm productivity, heterogeneous firms

KW - Intra-industry trade, firm productivity, heterogeneous firms

M3 - Working paper

BT - The Theoretical Equivalent of Empirically Measurable Exporter Productivity when Firms are Heterogeneous

PB - School of Economics and Management, Aarhus University

CY - Aarhus

ER -