Exporter heterogeneity and price discrimination: A quantitative view

Jung, Jae Wook; Simonovska, Ina; Weinberger, Ariel

doi:10.1016/j.jinteco.2018.09.011

Cited by 21 publications

(22 citation statements)

References 38 publications

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“…The preferences of the representative consumer in each country are identical but are non-homothetic leading to different marginal valuations of quality and access to variety. Specifically, we extend the preference system considered by Jung, Simonovska and Weinberger (2019) augmented such that varieties vary in their perceived quality. We denote the source country by i and the destination country by j.…”

Section: Tastes and Endowmentsmentioning

confidence: 99%

“…Much recent work analyzes the markup responses of firms to changes in trade policy (e.g. De Loecker et al, 2016;Jung, Simonovska and Weinberger, 2019). In our setting, shocks to trade costs affect firm-level prices through multiple mechanisms.…”

Section: Introductionmentioning

confidence: 99%

“…3 Our paper also contributes to the literature featuring variable markups. These papers include Jung, Simonovska and Weinberger (2019) and Atkeson and Burstein (2008). As in Jung, Simonovska and Weinberger (2019), we consider non-homothetic preferences and a market structure that gives rise to variable markups across firms.…”

Section: Introductionmentioning

confidence: 99%

“…These papers include Jung, Simonovska and Weinberger (2019) and Atkeson and Burstein (2008). As in Jung, Simonovska and Weinberger (2019), we consider non-homothetic preferences and a market structure that gives rise to variable markups across firms. Relative to their paper, we also consider vertically differentiated products, quality upgrading opportunities, and specific trade costs that give rise to the "Washington Apples" effect.…”

Section: Introductionmentioning

confidence: 99%

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Quality, Variable Markups, and Welfare: A Quantitative General Equilibrium Analysis of Export Prices

Yeaple¹

2019

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Section: Tastes and Endowmentsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Quality, Variable Markups, and Welfare: A Quantitative General Equilibrium Analysis of Export Prices

Yeaple¹

2019

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“…The implementation of N cco E;l requires setting a per-unit subsidy s r h j r=cco in all countries such that N cco E;l in (38) which corresponds to expression (39) in Section 6.2.…”

Section: Third Bestmentioning

confidence: 99%

Geography, Competition, and Optimal Multilateral Trade Policy

2019

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How should multilateral trade policy be designed in a world in which countries differ in terms of market access and technology, and firms with market power differ in terms of productivity? We answer this question in a model of monopolistic competition in which variable markups increasing in firm size are a key source of misallocation across firms and countries. We use `disadvantaged' to refer to countries with smaller market size, worse state of technology (in terms of higher innovation and production costs), and worse geography (in terms of more remoteness from other countries). We show that, in a global welfare perspective, optimal multilateral trade policy should: promote the sales of low cost firms to all countries, but especially to disadvantaged ones; trim the sales of high cost firms to all countries, but especially to disadvantaged ones; reduce firm entry in all countries, but especially in disadvantaged ones. This would not only restore efficiency but also reduce welfare inequality between advantaged and disadvantaged countries if their differences in market size, state of technology and geography are large enough.

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Agri‐food trade liberalization, export prices, and quality upgrading: Evidence from the meat and chocolate sectors in OECD countries

Valea,

Tamini,

Rousselière

2024

Agribusiness

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This article examines the impact of trade liberalization on export prices and quality. The article is innovative in two respects. First, unlike previous studies, it considers both input and output tariffs simultaneously in a theoretical model. Second, it empirically tests the effects of a combination of specific and ad‐valorem tariffs on quality improvement. The theoretical analysis suggests that when firms face reduced output and input tariffs, they tend to improve their export quality and increase export prices. Using export data from 33 OECD countries, the empirical analysis demonstrates that output tariff reduction increases export quality but decreases prices. However, the effects of input tariff reduction on price and quality depend on product differentiation. The results also indicate that the presence of specific tariffs increase product quality while amplifying the positive effects of the reduction of ad‐valorem tariffs on quality. This implies that to improve export quality, reducing ad‐valorem tariffs is more efficient than a specific tariff. [EconLit Citations: F12, F14, Q17].

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Exporter heterogeneity and price discrimination: A quantitative view

Cited by 21 publications

References 38 publications

Quality, Variable Markups, and Welfare: A Quantitative General Equilibrium Analysis of Export Prices

Quality, Variable Markups, and Welfare: A Quantitative General Equilibrium Analysis of Export Prices

Geography, Competition, and Optimal Multilateral Trade Policy

Agri‐food trade liberalization, export prices, and quality upgrading: Evidence from the meat and chocolate sectors in OECD countries

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