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Isabelle MEJEAN (Polytechnique) – “Search Frictions in International Good Markets”

October 9, 12:15 pm - 1:30 pm

The Macroeconomics Seminar: Every Monday at 12:15 pm.

Time: 12:15 pm – 1:30 pm
Date: 09th of October 2017
Place: Room 3001.

Isabelle MEJEAN  (Polytechnique) – “Search Frictions in International Good Markets”

Abstract:

We develop a model of search frictions in international good markets and 
study its implications for individual and aggregate trade flows. 
The model is an extension of the Eaton and Kortum (2002) model in which 
individual buyers meet with a random number of potential sellers. 
At the aggregate level, search frictions have a monotonic and negative impact
 on bilateral trade flows, and thus do not differ from other sources of trade 
frictions. However, search frictions affect individual exporters in a non-monotonic 
way. Low-productive exporters do not benefit from less search frictions since the
 randomness is what lets them serve buyers that they would not be able to reach
 in a frictionless market. Instead, highly productive firms always benefit from meeting with a larger 
number of potential partners. We use firm-to-firm trade data in the European Union to estimate the 
magnitude of such search frictions. We discuss how the model helps improve our 
understanding of firms' export qattrnw.
Joint with : Clément Lenoir (CREST-ENSAE) and Julien Martin (UQAM)

Organizers:
Julien PRAT (CREST )

Sponsors:
CREST

Address : ENSAE ParisTech  5, avenue Henry Le Chatelier 91120 Palaiseau, How to come?

 

Details

Date:
October 9
Time:
12:15 pm - 1:30 pm
Event Categories:
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Venue