A growing share of international trade occurs through intra-firm transactions-those between domestic and foreign subsidiaries of a multinational firm. The difficulties associated with writing and enforcing a vertical contract compound when a product must cross a national border, and may explain...

A large share of international trade occurs through intra-firm transactions. We show that this common crossborder organization of the firm has implications for the well-documented incomplete transmission of shocks across such borders. We present new evidence of an inverse relationship between a...

We present sufficient conditions for data on an industry's product prices, quantities, and input prices to identify retailers' and manufacturers' vertical supply model. Identification requires nonlinear demand for homogeneous products and multi-product firms with non-constant markups for...