Trade Adjustment and Productivity in Large Crises

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 3
Pages: 793-831

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We empirically characterize the mechanics of trade adjustment during the Argentine crisis. Though imports collapsed by 70 percent from 2000-2002, the entry and exit of firms or products at the country level played a small role. The within-firm churning of imported inputs, however, played a sizeable role. We build a model of trade in intermediate inputs with heterogeneous firms, fixed import costs, and roundabout production. Import demand is non-homothetic and the implications of an import price shock depend on the full distribution of firm-level adjustments. An import price shock generates a significant decline in productivity.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:3:p:793-831
Journal Field
General
Author Count
2
Added to Database
2026-01-25