We develop a model monopolistic competition model of trade and multinational production (MP). Firms receive an idiosyncratic productivity vector that is specified from a multivariate distribution and they also face distance related trade and MP costs. Thus, individual firms face a...

We develop a theory of staggered adjustment dynamics in a perfect competition model of trade with a continuum of varieties. New technologies for each variety arrive at a constant rate. The consumer consumes a product produced with a certain technology until an exogenous shock arrives. This shock...