International Prices and Endogenous Quality

• 成果类型: Article
• 署名作者: Feenstra, Robert C.; Romalis, John
• 署名单位: University of California System; University of California Davis; National Bureau of Economic Research; University of Sydney
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qju001
• 发表日期: 2014
• 页码: 477-527
• 关键词: product quality; trade-policy; income; variety; imports; TARIFFS; Quotas; IMPACT

摘要

The unit values of internationally traded goods are heavily influenced by quality. We model this in an extended monopolistic competition framework where, in addition to choosing price, firms simultaneously choose quality subject to nonhomothetic demand. We estimate quality and quality-adjusted price indexes for 185 countries over 1984-2011. Our estimates are less sensitive to assumptions about the extensive margin of firms than are purely demand-side estimates. We find that quality-adjusted prices vary much less across countries than do unit values and, surprisingly, the quality-adjusted terms of trade are negatively related to countries' level of income.