The ABCs of Firm Heterogeneity When Firms Sort into Markets: The Case of Exporters
提出一种新方法,在企业自主选择进入不同市场时,分离需求和成本对异质性的影响,并应用于出口商。发现出口商国内需求曲线更平坦、需求更高,且这些优势延伸到国外市场。
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.