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Project Citation: 

Blum, Bernardo S., Claro, Sebastian, and Horstmann, Ignatius J. Replication data for: A Balls-and-Bins Model of Trade: Comment. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112982V1

Project Description

Summary:  View help for Summary We show that the Armenter and Koren model's firm-product-country results rely on the assumption that export shipment size is independent of firm size, and this assumption is contradicted by the data. When actual shipment sizes are used in the balls-and-bins model, it cannot reproduce the data on single product/single country exporters. Beyond just showing that the shipment size assumption matters to balls-and-bins outcomes, our results highlight the important fact that shipment size is an economic decision, co-determined with other export choices. For this reason, we argue that a balls-and-bins model cannot be a purely statistical benchmark model. (JEL F11, F14, O13, O19, Q37)

Scope of Project

JEL Classification:  View help for JEL Classification
      F11 Neoclassical Models of Trade
      F14 Empirical Studies of Trade
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O19 International Linkages to Development; Role of International Organizations
      Q37 Nonrenewable Resources and Conservation: Issues in International Trade


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