Export Prices of U.S. Firms
University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)
University of Virginia - College of Arts and Sciences
December 1, 2011
US Census Bureau Center for Economic Studies Paper No. CES-WP- 11-42
Using confidential firm-level data from the United States in 2002, we show that exporting firms charge prices for narrowly defined goods that differ substantially with the characteristics of firms and export markets. We control for selection into export markets using a three-stage estimator. We have three main results. First, we find that that highly productive and skill intensive firms charge higher prices, while capital-intensive firms charge lower prices. Second, the very large correlation between distance and export prices found by Baldwin and Harrigan (2011) is largely due to a composition effect. Third, U.S. firms charge slightly higher prices to larger and richer markets, and substantially higher prices to markets other than Canada and Mexico.
Number of Pages in PDF File: 26
Keywords: exporters, firm level data, pricing, heterogeneous firms
JEL Classification: F1, F10, F23working papers series
Date posted: December 22, 2011
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