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GTAP Resources: Resource Display

GTAP Resource #5610

"Using Power Laws to Identify the Structural Parameters of Trade Models with Firm Heterogeneity"
by Ahmad, Saad and Zeynep Akgul

While various firm heterogeneity models of trade have recently emerged in the CGE literature, their mainstream adoption in trade policy analysis has been limited partly due to lack of available parameter estimates at the disaggregated sector level. In particular, the productivity dispersion and substitution elasticity parameters need to be estimated in a manner consistent with the theoretical underpinnings of the firm heterogeneity framework. In this paper we address this gap by estimating the productivity dispersion parameter by using ORBIS firm-level data and imputing substitution elasticities by
fitting the firm size distribution and productivity distribution to the Pareto distribution.

Resource Details (Export Citation) GTAP Keywords
Category: 2018 Conference Paper
Status: Published
By/In: Presented at the 21st Annual Conference on Global Economic Analysis, Cartagena, Colombia
Date: 2018
Created: Ahmad, S. (4/15/2018)
Updated: Ahmad, S. (4/15/2018)
Visits: 1,300
- Calibration and parameter estimation
- Model validation and sensitivity analysis

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