Firm Heterogeneity and Firm Behavior with Conditional Policies
12 Pages Posted: 9 Mar 2007 Last revised: 22 May 2021
Date Written: March 2007
This paper shows that the result of Ju and Krishna (2002, 2005), i.e., the non-monotonicity in the comparative statics across regimes, disappears, if exporters differ in their productivities, which provides very different predictions about the results of policy changes.
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