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The Opportunity Costs of Entrepreneurs in International Trade
by Timothy J. Kehoe, Pau S. Pujolas, Kim J. Ruhl ยท 2016
ISBN: Unavailable
Category: Unavailable
Page count: 8
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.