SELECTION EFFECTS WITH HETEROGENEOUS FIRMS

• 成果类型: Article
• 署名作者: Mrazova, Monika; Neary, J. Peter
• 署名单位: University of Geneva; University of Oxford
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvy024
• 发表日期: 2019
• 页码: 1294-1334
• 关键词: research-and-development; foreign direct-investment; monopolistic competition; trade liberalization; FDI; PRODUCTIVITY; equilibrium; export; TECHNOLOGY; INEQUALITY

摘要

We characterize how firms select between alternative ways of serving a market. First-order selection effects, whether firms enter or not, are extremely robust. Second-order ones, how firms serve a market conditional on entry, are much less so: more efficient firms select the entry mode with lower market-access costs if firms' maximum profits are supermodular in production and market-access costs, but not necessarily otherwise. We derive microfoundations for supermodularity in a range of canonical models. Notable exceptions include horizontal and vertical FDIwith subconvex demands (i.e., less convex than CES), fixed costs that increase with productivity, and R&D with threshold effects.