Schröder, Philipp J.H.; Sørensen, Allan - In: Canadian Journal of Economics 45 (2012) 4, pp. 1310-1331
Contrary to the prevailing interpretation, this paper shows that the central models of trade with heterogeneous firms (<link>Melitz 2003</link>; <link>Bernard et al. 2003</link>) exhibit ambiguous predictions for the exporter productivity premium. This prospect arises because of differences between theoretical and...