We develop and estimate a search model in which identical consumers trade with price-setting firms that differ in productivity. In the model, equilibrium distributions of both prices and markups are non-degenerate and continuous with a firm's price decreasing in its productivity. Variation in...

In this paper, we provide evidence of frictions associated with trade in goods and services among Canadian provinces. We examine empirical relationships between sector- and industry-level trade flows and trading frictions associated with intra-provincial trade, inter-provincial trade, and...

We develop an open economy monetary model with heterogeneous households which is characterized by incomplete pass-through of exchange rate movements to import prices. Partial pass-through arises in our environment due to the presence of competitive search in international goods' markets. Under...

This paper estimates the impact on Canadian retailers' revenues of significantly decreased international travel by Canadians in response to the Covid-19 related travel restrictions imposed on the US-Canada border. We use detailed data from 1991 to 2020 on Canadians' travel to the United States...