Staff Report 533
The Opportunity Costs of Entrepreneurs in International Trade
Published August 1, 2016
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.
Published In: Economics Letters (Vol. 146, 2016, pp. 01-03)
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