A Balls-and-Bins Model of Trade: Comment

S-Tier
Journal: American Economic Review
Year: 2016
Volume: 106
Issue: 3
Pages: 843-51

Authors (3)

Bernardo S. Blum (not in RePEc) Sebastian Claro (not in RePEc) Ignatius J. Horstmann (University of Toronto)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that the Armenter and Koren model's firm-product-country results rely on the assumption that export shipment size is independent of firm size, and this assumption is contradicted by the data. When actual shipment sizes are used in the balls-and-bins model, it cannot reproduce the data on single product/single country exporters. Beyond just showing that the shipment size assumption matters to balls-and-bins outcomes, our results highlight the important fact that shipment size is an economic decision, co-determined with other export choices. For this reason, we argue that a balls-and-bins model cannot be a purely statistical benchmark model. (JEL F11, F14, O13, O19, Q37)

Technical Details

RePEc Handle
repec:aea:aecrev:v:106:y:2016:i:3:p:843-51
Journal Field
General
Author Count
3
Added to Database
2026-01-25