The opportunity costs of entrepreneurs in international trade

Timothy J. Kehoe; Pau S. Pujolàs; Kim J. Ruhl

doi:10.1016/j.econlet.2016.07.012

The opportunity costs of entrepreneurs in international trade

Timothy J. Kehoe, Pau S. Pujolàs, Kim J. Ruhl

Economics (Twin Cities)

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs’ forgone wages in the span-of-control model.

Original language	English (US)
Pages (from-to)	1-3
Number of pages	3
Journal	Economics Letters
Volume	146
DOIs	https://doi.org/10.1016/j.econlet.2016.07.012
State	Published - Sep 1 2016

Bibliographical note

Publisher Copyright:
© 2016 Elsevier B.V.

Keywords

Firm heterogeneity
Income distribution
International trade
Span-of-control model

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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abstract = "We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs{\textquoteright} forgone wages in the span-of-control model.",

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The opportunity costs of entrepreneurs in international trade

Abstract

Bibliographical note

Keywords

UN SDGs

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