8 июн. 2010 г. · The underlying idea in Melitz (2003) is that only highly productive firms are able to make sufficient profits to cover the large fixed costs ...

New trade theory (NTT) is a collection of economic models in international trade theory which focuses on the role of increasing returns to scale and network ... Development · Trade in intermediate products

Melitz (2003) combines the monopolistic competition model of new trade theory with the firm heterogeneity assumption and constructs a model of intraindustry ...

4 сент. 2024 г. · In particular, the Melitz model assumes that firms within a sector operate in a context of monopolistic competition, offering horizontally ...

The other major insight of Melitz is that trade liberalization does not only lead to resource reallocations between sectors but also within sectors; resources ...

We review the literature on the so-called “new-new” trade theory models starting with the pioneering work by Melitz (Econometrica, 71(6):1695–1725, 2003).

We show that endogenous firm selection provides a new welfare margin for heterogeneous firm models of trade (relative to homogeneous firm models).

○ Theory: Melitz, Helpman, Antras, et al., 2000-. New-New trade theory. • Firm heterogeneity. • Product differentiation. • Monopolistic competition. • Policy ...

The new trade theory, which emerged in the early 1980s, emphasised economies of scale and market failures as driving forces behind international trade. As ...

This paper develops a dynamic industry model with heterogeneous firms to analyze the intra-industry effects of international trade. The model shows how the ...