Sogalla, Robin; Wanner, Joschka; Watabe, Yuta - 2024
This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment … nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models … without heterogeneity. We show that if firms have a constant emission share in terms of sales - as they do in a wide range of …