Web-Based Technical Appendix: Multi-Product Firms and Trade Liberalization
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چکیده
This appendix contains additional technical derivations and supplementary material for the main paper. Section 1 presents model solutions for the special case where firm productivity and consumer tastes are Pareto distributed. Section 2 contains the complete proof of Proposition 3 in the paper. Section 3 shows that it is straightforward to extend the model to introduce dependence in consumer tastes. Section 4 augments the model to include stochastic variation in firm productivity and consumer tastes over time, which induces steady-state adding and dropping of products within firms, but does not change the model’s cross-sectional predictions that are the focus of the paper. Section 5 shows that the model can be extended to incorporate comparative advantage based on cross-country differences in factor endowments and cross-industry differences in factor intensity.
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