Supply and demand functions are typically estimated using uniform prices and quantifies across products, but where .products are heterogeneous, it is important tO Consider quality differences explicitly. This paper demonstrates a new approach to doing this by employing hedonic coefficients to estimate price elasticities for differentiated products in the market for personal computers. Differenc...

Abstract How do trade costs affect international trade? This paper offers a new approach. We rely on flexible gravity equation that predicts variable cost elasticities, both across and within country pairs. apply this framework to popular variables such as currency unions, agreements World Trade Organization membership. While we estimate these are associated with increased bilateral average, fi...