This paper examines how prices, markups and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with mult-product firms. This apporoach does not require assumptions on the market structure or demand curves faced by the firms, nor...

New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from a large developing economy - India - to investigate the relationship between declines in trade costs, the imports of intermediate inputs and domestic firm product scope. We estimate...

New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from a large developing economy - India - to investigate the relationship between declines in trade costs, the imports of intermediate inputs and domestic firm product scope. We estimate...

This paper studies the role of technology and competition in industry-wide productivity growth. We rely on a unique producer-level dataset covering U.S. steel producers between 1963 and 2002 to measure the impact of a drastic new production technology, the minimill, on aggregate productivity. In...

The inertia of the local-currency prices of traded goods in the face of exchange-rate changes is a well-documented phenomenon in International Economics. This paper develops a framework for identifying the sources of local-currency price stability. The empirical approach exploits...

The inertia of the local-currency prices of traded goods in the face of exchange-rate changes is a well-documented phenomenon in International Economics. This paper develops a framework for identifying the sources of local-currency price stability. The empirical approach exploits...

Patent enforcement in developing countries generates considerable controversy, especially when patents involve potentially life-saving drugs. This paper argues that common concerns regarding the effects of patents on prices and on research incentives of pharmaceutical multinationals are...

How rigid are producer prices? Conventional wisdom is that producer prices are more rigid than and so play less of an allocative role than do consumer prices. In the 1987-2008 micro data collected by the U.S. Bureau of Labor Statistics for the PPI, we find that producer prices for finished goods...