There is increasing empirical evidence that vertical product differentiation is an important determinant of international trade. However, the economic literature so far has solely focused on the case in which quality trade stems from differences between countries. No studies investigate the role of quality trade between similar economies. This paper first develops a simple theoretical trade model that includes vertical product differentiation in a...
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INFORMATION
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2008/03/01
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Document de travail de recherche sur les politiques
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WPS4550
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1
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1
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2010/07/01
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Disclosed
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Heterogeneous quality firms and trade costs
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trade costs
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