Report
The Opportunity Costs of Entrepreneurs in International Trade
Abstract: We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs' forgone wage in the span-of-control model.
Keywords: Firm heterogeneity; International trade; Span-of-control model; Income distribution;
JEL Classification: D31; D43; F12;
Access Documents
File(s):
File format is application/pdf
https://minneapolisfed.org/research/sr/sr533.pdf
Description: Full text
Bibliographic Information
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 2016-08-01
Number: 533
Pages: 10 pages