In this paper, we estimate firm-level markups and test some micro-level predictions of a model of international trade with heterogenous firms and endogenous mark-ups. Our theoretical framework is an extended version of the Melitz and Ottaviano (2008) (MO) model which features both quality and...

This paper provides new evidence on international productivity gaps; this evidence is obtained from large-scale rm-level data from the French and Japanese manufacturing industries using non-parametric methodologies designed to overcome confidentiality restrictions. Our primary finding is that...