Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30265
Authors: 
Schmidt, Gabriela
Year of Publication: 
2010
Series/Report no.: 
Kiel Working Paper 1600
Abstract: 
This paper develops two extensions of the dynamic model presented in Melitz (2003). The first extension consists in the introduction of technology choice between three alternative production technologies: L, M and H. L is assumed to be the same as Melitz's single production technology, while M and H are assumed to be superior production technologies, stemming this superiority from the fact these technologies substitute the more primitive capital goods used in technology L with newer, updated versions which embody technological advances, and also from the fact that M and H are more skill-intensive than L. Technologies M and H are equally skill-intensive, but H still is superior to M because it incorporates world-technology-frontier capital goods, while the capital goods used in M are below such frontier. The second extension consists in the introduction of two different exporting profiles: 'Low-Commitment Exporters' - who make the minimum possible investment required to penetrate export markets- and 'High-Commitment Exporters' - who are ready to make additional trade-related investments in order to gain additional export sales.
Subjects: 
Technology choice
heterogeneous firms
export profiles
embodied technology
resources' redistribution
monopolistic competition
JEL: 
O14
O33
Document Type: 
Working Paper

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