A heterogeneous-firm trade model can explain the recent decrease in exchange rate pass-through to aggregate U.S. import prices as a result of decreased trade costs. A decrease in trade costs enables lower-productivity firms to begin exporting. The recent decrease in the responsiveness of U.S....

A predictive model that is trained with non-randomly selected samples can offer biased predictions for the population. This paper discusses when non-random selection is a problem. For the applications in which it is a problem, this paper presents a procedure for adjusting the predictions of...