Export Prices of U.S. Firms

26 Pages Posted: 22 Dec 2011

See all articles by James Harrigan

James Harrigan

University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)

Xiangjun Ma

University of Virginia - College of Arts and Sciences

Victor Shlychkov

Columbia University

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2011

Abstract

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.

Keywords: exporters, firm level data, pricing, heterogeneous firms

JEL Classification: F1, F10, F23

Suggested Citation

Harrigan, James and Ma, Xiangjun and Shlychkov, Victor, Export Prices of U.S. Firms (December 1, 2011). US Census Bureau Center for Economic Studies Paper No. CES-WP- 11-42. Available at SSRN: https://ssrn.com/abstract=1975849 or http://dx.doi.org/10.2139/ssrn.1975849

James Harrigan (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Xiangjun Ma

University of Virginia - College of Arts and Sciences ( email )

VA
United States

Victor Shlychkov

Columbia University

3022 Broadway
New York, NY 10027
United States

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