Konstantinos (Costas) Arkolakis

Appendix to:
Market Penetration Costs and the New Consumers Margin in International Trade

1. Free Entry
   • Model isomorphic to a model with free entry (Appendix, Appendix to Arkolakis, Demidova, Klenow, and Rodriguez '08 with the same result for the Chaney-Melitz model)
2. Advertising Mechanisms
   • Isomorphism to market penetration cost that increase sales per consumer
3. Distribution of Sales
   • Distribution in log-log
   • Distribution by countries
   • Distribution by sectors (20-29 firms, 30-99 firms, 100+ firms)
   • Distribution by goods
   • Distribution by goods, monthly
4. Trade Liberalization
   • Tariffs
     • Tariffs of US for Mexico pre-NAFTA (averages, trade-weighted)
   • Growth Rates of trade flows
     • With liberalization episode (Canada-Mexico)
     • No liberalization episode, US imports (France, Germany, Japan, UK )
5. Calibration
   • Firm Entry by destination (French firm entry divided by French market share & wages/population , Model Predicted and actual entry)
   • Distribution sales for different Betas
   • Model fit for alternative calibrations
6. Margins in Trade Liberalization
   • Density of sales in HS-6 goods (data, data & endogenous cost model, data & fixed cost model)
7. Alternative Explanations
   • Tariffs-Trade Costs (notes on trade costs)
   • Multi-product firms (see Arkolakis and Muendler '04)
   • Non-homothetic demand: A Generalized solution for the linear demand example
   • Sectorial agrregation (see distribution of sales by sector in point 3 and Eaton, Kortum, and Kramarz '04)

* For terminology and references used, see paper.
Source for firm level data, Eaton, Kortum, and Kramarz and for goods data, OECD.

This site was last updated July 24, 2009