Arbeitspapier
Decomposing firm-product appeal: How important is consumer taste?
We develop and structurally estimate a trade model in order to identify the importance of consumer taste. The model separates taste from quality and productivity (TFPQ) at the firm-product level. Export data by destination countries allow us to identify the level of taste from consumer heterogeneity across destinations. We decompose export revenue into the contribution of taste, quality and costs. We find that taste is very important and explains about 50 % of the variation in export revenue. Productivity (TFPQ) differences between firm-products become more prominent than taste in explaining export success only when the cost elasticity of improving quality is high.
- Language
-
Englisch
- Bibliographic citation
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Series: NBB Working Paper ; No. 337
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
- Subject
-
tastes
quality
productivity
exports
firm-product
- Event
-
Geistige Schöpfung
- (who)
-
Aw, Bee-Yan
Lee, Yi
Vandenbussche, Hylke
- Event
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Veröffentlichung
- (who)
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National Bank of Belgium
- (where)
-
Brussels
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Arbeitspapier
Associated
- Aw, Bee-Yan
- Lee, Yi
- Vandenbussche, Hylke
- National Bank of Belgium
Time of origin
- 2018
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Appeal