Welfare and Trade without Pareto
Détails
ID Serval
serval:BIB_1B9CD372062A
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Welfare and Trade without Pareto
Périodique
American Economic Review
ISSN
0002-8282
Statut éditorial
Publié
Date de publication
05/2014
Peer-reviewed
Oui
Volume
104
Numéro
5
Pages
310-316
Langue
anglais
Résumé
Quantifications of gains from trade in heterogeneous firm models assume that productivity is Pareto distributed. Replacing this assumption with log-normal heterogeneity retains some useful Pareto features, while providing a substantially better fit to sales distributions-especially in the left tail. The cost of log-normal is that gains from trade depend on the method of calibrating the fixed cost and productivity distribution parameters. When set to match the size distribution of firm sales in a given market, the log-normal assumption delivers gains from trade in a symmetric two-country model that can be twice as large as under the Pareto assumption.
Web of science
Site de l'éditeur
Création de la notice
25/10/2013 21:02
Dernière modification de la notice
21/08/2019 5:12