Departmental Seminar: "Firm-to-Firm Trade: Imports, Exports, and the Labor Market" by Prof. Samuel Kortum (Yale University)

Firm-level customs and production data reveal both the heterogeneity and the granularity of
relationships among individual buyers and sellers. We develop a general equilibrium model
that captures these firm-level features and is also consistent with observations at the aggregate
level. Our model is one of trade through random meetings. Buyers, who may be households
looking for final products or firms looking for inputs, connect with sellers randomly. At
the firm level, the model generates predictions for buyer-seller connections and the share of
labor in production broadly consistent with observations on French manufacturers and their
customers in other countries of the European Union. At the aggregate level, firm-to-firm trade
determines bilateral trade shares as well as labor's share of output in different countries.
Co-authors: Jonathan Eaton and Francis Kramarz

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Location:

Conference Room, Villa la Fonte

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Affiliation:

Department of Economics

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Type:

Seminar

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Organiser:

Prof. Ramon Marimon (EUI - Professor of Economics and Pierre Werner Chair)

Prof. Philipp Kircher (University of Edinburgh)

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Speaker:

Prof. Samuel Kortum (Yale University)

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Contact:

Rossella Corridori (Eco) - Send a mail