income countries and states have high demand for low quality products which can be produced efficiently in small plants. I … respect to quality on the consumer side. On the producer side, high quality production has higher marginal costs and requires … higher fixed costs. These two features imply that high quality producers are larger on average and charge higher prices. The …

fluctuations due to product quality. Our model shows that the elasticity of demand perceived by exporters decreases with a real … depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation … for higher quality goods. We test the proposed theory using a highly disaggregated Argentinean firm-level wine export …