The opportunity costs of entrepreneurs in international trade

Timothy J. Kehoe, Pau S. Pujolàs, Kim Joseph Ruhl

Research output: Contribution to journalArticle

1 Citation (Scopus)

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 wages in the span-of-control model.

Original languageEnglish (US)
Pages (from-to)1-3
Number of pages3
JournalEconomics Letters
Volume146
DOIs
StatePublished - Sep 1 2016

Fingerprint

International trade
Opportunity cost
Entrepreneurs
Span of control
Heterogeneous firms
Fixed costs
Wages
Operating costs

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

Kehoe, Timothy J. ; Pujolàs, Pau S. ; Ruhl, Kim Joseph. / The opportunity costs of entrepreneurs in international trade. In: Economics Letters. 2016 ; Vol. 146. pp. 1-3.
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The opportunity costs of entrepreneurs in international trade. / Kehoe, Timothy J.; Pujolàs, Pau S.; Ruhl, Kim Joseph.

In: Economics Letters, Vol. 146, 01.09.2016, p. 1-3.

Research output: Contribution to journalArticle

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