Year of Graduation
Trade Model a-la Melitz with Unidentical Distributions of Productivities
This paper, entitled "Trade Model a-la Melitz with Unidentical Distributions of Productivities" is aimed for understanding the model of endogenous entrepreneurship in the context of the heterogeneity of firms. This survey will help to understand how the share of high-yield firms in the economy will change when the distribution of productivity of heterogeneous firms will shift in conditions of monopolistic competition. Trade liberalization is one of the most popular areas to study in economic modeling. However, in order to assess the impact of a shift in distribution, which can be caused by sudden economic shocks, in an open economy, it is necessary to study and describe in detail these effects when the industry is closed. Two different types of shift are considered: an additive and multiplicative transformation of the a priori function and the density distribution of the productivity of firms in the economy. The first type of shift corresponds to the displacement of the distribution boundaries by an arbitrary parameter (the distribution shift to the left / right), and the second - the multiplication of the boundaries by this parameter (compressing / stretching the distribution).