Artikel
CREDIT CONSTRAINTS, ENDOGENOUS INNOVATIONS, AND PRICE SETTING IN INTERNATIONAL TRADE
This article analyzes the role of credit frictions in a trade model where producers differ in their capabilities to conduct process and quality innovations and require external finance for investments. Accounting for cost‐based and quality‐based sorting of firms in a unified framework allows us to demonstrate that the reactions of prices and commonly used productivity measures do not necessarily reflect welfare implications. Credit frictions lead to distortions through aggravated access to finance and endogenous price adjustments so that the responses of quantity‐based and revenue‐based productivity differ substantially. In counterfactual scenarios, we show that these differential effects are quantitatively important.
- Language
-
Englisch
- Bibliographic citation
-
Journal: International Economic Review ; ISSN: 1468-2354 ; Volume: 64 ; Year: 2023 ; Issue: 4 ; Pages: 1715-1747 ; Hoboken, NJ: Wiley
- Classification
-
Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Eckel, Carsten
Unger, Florian
- Event
-
Veröffentlichung
- (who)
-
Wiley
- (where)
-
Hoboken, NJ
- (when)
-
2023
- DOI
-
doi:10.1111/iere.12651
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Eckel, Carsten
- Unger, Florian
- Wiley
Time of origin
- 2023
Other Objects (12)
Credit constraints, endogenous innovations, and price setting in international trade
Firm heterogeneity, credit constraints, and endogenous growth
Firm heterogeneity, credit constraints, and endogenous growth
Monetary Policy, Price Setting, and Credit Constraints
The political economy of post-compulsory education policy with endogenous credit constraints
Cost Reducing Innovations and Endogenous Spillovers
Credit constraints in education
Bankruptcy choice with endogenous financial constraints
Staggered Price Setting and Endogenous Persistence
Experimental Evidence on Credit Constraints
Credit constraints and consumer spending
Production and endogenous bankruptcy under collateral constraints
Credit constraints, endogenous innovations, and price setting in international trade
Firm heterogeneity, credit constraints, and endogenous growth
Firm heterogeneity, credit constraints, and endogenous growth
Monetary Policy, Price Setting, and Credit Constraints
The political economy of post-compulsory education policy with endogenous credit constraints
Cost Reducing Innovations and Endogenous Spillovers
Credit constraints in education
Bankruptcy choice with endogenous financial constraints
Staggered Price Setting and Endogenous Persistence
Experimental Evidence on Credit Constraints
Credit constraints and consumer spending
Production and endogenous bankruptcy under collateral constraints
Credit constraints, endogenous innovations, and price setting in international trade
Firm heterogeneity, credit constraints, and endogenous growth
Firm heterogeneity, credit constraints, and endogenous growth
Monetary Policy, Price Setting, and Credit Constraints
The political economy of post-compulsory education policy with endogenous credit constraints
Cost Reducing Innovations and Endogenous Spillovers
Credit constraints in education
Bankruptcy choice with endogenous financial constraints
Staggered Price Setting and Endogenous Persistence
Experimental Evidence on Credit Constraints
Credit constraints and consumer spending