Decoupling the CES Distribution Circle with Quality and Beyond: Equilibrium Distributions and the CES-Logit Nexus
研究了CES需求下异质性生产率企业的利润、收入和产出分布与生产率分布同属一个幂律族，引入产品质量可解耦该分布圈，并利用离散选择模型推导出连接CES和Logit的灵活需求形式。
Abstract We show for CES demands with heterogeneous productivities that profit, revenue and output distributions lie in the same closed power family as the productivity distribution (e.g., the ‘Pareto circle’). The price distribution lies in the inverse power family. Equilibrium distribution shapes are linked by linear relations between their density elasticities. Introducing product quality decouples the CES circle, and reconciles Pareto price and Pareto sales revenue distributions. We use discrete choice underpinnings to find variable mark-ups for a more flexible demand formulation bridging CES to logit and beyond. For logit demand, exponential (resp. normal) quality-cost distributions generate Pareto (log-normal) economic size distributions.