Metadata record for Data and Code for: An Empirical Dynamic Model of Trade with Consumer Accumulation
120070
Inter-university Consortium for Political and Social Research
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V1
Data and Code for: An Empirical Dynamic Model of Trade with Consumer Accumulation
120070
http://doi.org/10.3886/E120070V1
Paul Piveteau
Please see full citation.
This work is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) License.
Ann Arbor, MI: Inter-university Consortium for Political and Social Research
Piveteau, Paul. Data and Code for: An Empirical Dynamic Model of Trade with Consumer Accumulation. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-10-28. https://doi.org/10.3886/E120070V1
international trade
F14 Empirical Studies of Trade
F17 Trade: Forecasting and Simulation
L20 Firm Objectives, Organization, and Behavior: General
This paper develops a dynamic structural model of trade in which firms slowly accumulate consumers in foreign markets. Estimating the model using export data from individual firms and a particle Markov chain Monte Carlo estimator, the model predicts lower survival rates for new exporters and estimates low entry costs of exporting - less than half of those estimated in the absence of consumer accumulation. Using simulations and out-of-sample predictions, I show that the introduction of such frictions and the reduction in estimated entry costs allow the model to match important facts regarding the aggregate response of international trade to shocks.