Input Sourcing and Multinational Production
构建一般均衡模型分析企业选择外包或内部生产投入品的决策，发现企业内部进口与生产率分布均值、方差及投入品差异化程度正相关，并量化了美国从内部贸易中获得的福利收益约为人均消费的0.23%。
I propose a general equilibrium framework where firms decide whether to outsource or integrate input manufacturing, domestically or abroad. By outsourcing, firms may benefit from suppliers' technologies, but pay mark-up prices. By sourcing intrafirm, they save on mark-ups and pay possibly lower foreign wages. Multinational corporations arise when firms integrate production abroad. The model predicts that intrafirm imports are positively correlated with the mean and variance of the firms' productivity distribution and with the degree of input differentiation. I use the model to quantify the US welfare gains from intrafirm trade, which amount to about 0.23 percent of consumption per-capita.