The DOI matches its Crossref record; 41 of the 41 references it cites were found in a registry or an index.
International Trade and Macroeconomic Dynamics with Heterogeneous Firms
Abstract
We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only relatively more productive firms export. Exogenous shocks to aggregate productivity and entry or trade costs induce firms to enter and exit both their domestic and export markets, thus altering the composition of consumption baskets across countries over time. In a world of flexible prices, our model generates endogenously persistent deviations from PPP that would not exist absent our microeconomic structure with heterogeneous firms. It provides an endogenous, microfounded explanation for a Harrod-Balassa-Samuelson effect in response to aggregate productivity differentials and deregulation. Finally, the model successfully matches several moments of U. S. and international business cycles.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Melitz, M. J. (2003) · Econometrica · doi:10.1111/1468-0262.00467 · Cited by 12,309
Self-citationTime to Build and Aggregate Fluctuations
Kydland, F. E., & Prescott, E. C. (1982) · Econometrica · doi:10.2307/1913386 · Cited by 5,825
INTEREST AND PRICES: FOUNDATIONS OF A THEORY OF MONETARY POLICY
Woodford, M., & WALSH, C. E. (2005) · Macroeconomic Dynamics · doi:10.1017/s1365100505040253 · Cited by 5,508
Scale Economies, Product Differentiation, and the Pattern of Trade
(1990) · Rethinking International Trade · doi:10.7551/mitpress/5933.003.0005 · Cited by 4,464
Exceptional exporter performance: cause, effect, or both?
Bernard, A. B., & Bradford Jensen, J. (1999) · Journal of International Economics · doi:10.1016/s0022-1996(98)00027-0 · Cited by 3,110
Plants and Productivity in International Trade
Bernard, A. B., Eaton, J., Jensen, J. B., & Kortum, S. (2003) · American Economic Review · doi:10.1257/000282803769206296 · Cited by 2,980
Foundations of International Macroeconomics
Froyen, R. T., Obstfeld, M., & Rogoff, K. (1997) · Southern Economic Journal · doi:10.2307/1061063 · Cited by 2,980
The Purchasing Power Parity Puzzle
Rogoff, K. (1996) · RePEc: Research Papers in Economics · Cited by 2,910
Entry, Exit, and firm Dynamics in Long Run Equilibrium
Hopenhayn, H. A. (1992) · Econometrica · doi:10.2307/2951541 · Cited by 2,857
Globalization and the Gains From Variety
Broda, C., & Weinstein, D. E. (2006) · The Quarterly Journal of Economics · doi:10.1162/qjec.2006.121.2.541 · Cited by 2,478
Cited by
New Trade Models, Same Old Gains?
Arkolakis, C., Costinot, A., & Rodríguez-Clare, A. (2012) · American Economic Review · doi:10.1257/aer.102.1.94 · Cited by 1,707
Estimates of the Trade and Welfare Effects of NAFTA
Caliendo, L., & Parro, F. (2015) · The Review of Economic Studies · doi:10.1093/restud/rdu035 · Cited by 1,518
Market Penetration Costs and the New Consumers Margin in International Trade
Arkolakis, C. (2010) · Journal of Political Economy · doi:10.1086/657949 · Cited by 699
Product Creation and Destruction: Evidence and Price Implications
Broda, C., & Weinstein, D. E. (2010) · American Economic Review · doi:10.1257/aer.100.3.691 · Cited by 490
Firms, Destinations, and Aggregate Fluctuations
(2014) · Econometrica · doi:10.3982/ecta11041 · Cited by 369
Metadata
- Authors
- Ghironi, F., & Melitz, M. J.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2005-08-01
- Volume
- 120
- Issue
- 3
- Pages
- 865-915
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W3125305571
- Cited by
- 587
- References
- 41
- FWCI
- 55.19
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: International Trade and Macroeconomic Dynamics with Heterogeneous Firms. https://app.cochat.ai/papers/10.1093/qje/120.3.865
- The paper
- Ghironi, F., & Melitz, M. J. (2005). International Trade and Macroeconomic Dynamics with Heterogeneous Firms. The Quarterly Journal of Economics. https://doi.org/10.1093/qje/120.3.865
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
