@article{dcff7b9a7ed64273a531b94da0efd6d4,
title = "Multiproduct firms and trade liberalization",
abstract = "This article develops a general equilibrium model of multiple-product, multiple-destination firms, which allows for heterogeneity in ability across firms and in product attributes within firms. Firms make endogenous entry and exit decisions and each surviving firm chooses optimally the range of products to supply to each market. We show that the resulting selection, across and within firms, provides a natural explanation for a number of features of trade across firms, products, and countries. Using both time-series changes in trade policy and cross-section variation in trade, we provide empirical evidence in support of the predictions of the model.",
author = "Bernard, {Andrew B.} and Redding, {Stephen J.} and Schott, {Peter K.}",
note = "Funding Information: ∗Bernard and Schott (SES-0241474) and Schott (SES-0550190) thank the National Science Foundation, and Redding thanks the Centre for Economic Performance (CEP), Princeton University, and Yale University for research support. We thank Jim Davis from Census for timely disclosure, and Evan Gill, Justin Pierce, and Yanhui Wu for excellent research assistance. We are very grateful to the editor, four anonymous referees, Costas Arkolakis, Jonathan Eaton, Gordon Hanson, MarcMelitz, GuyMichaels, PeterNeary, HenryOverman, EstebanRossi-Hansberg, and conference and seminar participants for insightful comments. The empirical research in this article was conducted at the Boston, New York, and Washington U.S. Census Regional Data Centers. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the National Science Foundation or the U.S. Census Bureau. Results have been screened to ensure that no confidential data are revealed.",
year = "2011",
month = aug,
day = "1",
doi = "10.1093/qje/qjr021",
language = "English (US)",
volume = "126",
pages = "1271--1318",
journal = "Quarterly Journal of Economics",
issn = "0033-5533",
publisher = "Oxford University Press",
number = "3",
}