This paper exploits product-level U. S. import data to test trade theory. Although the United States increasingly sources the same products from both high- and low-wage countries, unit values within products vary systematically with exporter relative factor endowments and exporter production...

This article develops a general equilibrium model of multiple-product, multiple-destination firms, which allows for heterogeneity in ability across firms and in product attributes within firms. Firms make endogenous entry and exit decisions and each surviving firm chooses optimally the range of...

We develop a method for decomposing countries' observed export prices into quality versus quality-adjusted components using information contained in trade balances. Holding observed export prices constant, countries with trade surpluses are inferred to offer higher quality than countries running...