This variant includes monopolistically competitive firms with heterogeneous productivity and scale economies. The model can simulate the effects of changes in tariffs, fixed costs of production, and fixed costs of exporting on the volume of cross-border imports and domestic shipments, as well as inbound foreign affiliate sales.

Model Details:

• Structural Equations for PE Models in Group 3 U.S. [ PDF , 5 pages]

Tags:

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Model Contacts:

• pemodeling@usitc.gov

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Download Model:

• model with foreign affiliate sales and cross-border trade xlsx [ XLSX , 33 KB ]

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Download Model LaTex:

• Structural Equations for PE Models in Group 3 U.S. [ TXT , B ]

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Associated Papers:

• https://www.usitc.gov/publications/332/working_papers/pe_cross_border_ownership_01-28-20.pdf [ PDF ]

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Recommended Citations:

Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 3 (Foreign Direct Investment). U.S. International Trade Commission. Trade Policy PE Modeling Portal.

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