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Fixed Export Cost heterogeneity, Trade and Welfare

Schröder, Philipp J.H. et al.
Munich Personal RePEc Archive · Reports
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fragmentation
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper presents a new and simple heterogeneous-firms specification. We develop a symmetric two-country
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