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dc.contributor.authorJaumandreu, Jordien_US
dc.contributor.authorYin, Hengen_US
dc.date.accessioned2019-12-20T15:30:44Z
dc.date.available2019-12-20T15:30:44Z
dc.date.issued2018
dc.identifier.citationJaumandreu, Jordi and Yin, Heng. 2018. Cost and Product Advantages: Evidence from Chinese Manufacturing Firms (February 2017). CEPR Discussion Paper No. DP11862.
dc.identifier.urihttps://hdl.handle.net/2144/39031
dc.description.abstractWe use data on 70,000 Chinese manufacturing firms that sell domestically and export to robustly estimate the joint distribution of unobserved productivity (cost advantages) and unobserved demand heterogeneity (product advantages) from 1998 to 2008. Product advantages show a trade off with cost advantages and are positively related to observed costs. Using the advantages we characterize Chinese manufacturing, that grew competing more on costs than in product advantages (which account for a significant but small 24% of growth). Our estimation highlights important biases affecting the estimates of the coefficients of the production function, demand elasticities and markups, when heterogeneity of demand or its correlation with productivity are ignored. With the separation of cost and product advantages, we revisit and reinterpret recent studies to find new results which change their policy consequences.en_US
dc.subjectCost advantagesen_US
dc.subjectDemand heterogeneityen_US
dc.subjectProduct advantagesen_US
dc.subjectProductivityen_US
dc.subjectChinaen_US
dc.titleCost and product advantages: evidence from Chinese manufacturing firmsen_US
dc.typeArticleen_US
dc.description.versionFirst author draften_US
pubs.elements-sourcemanual-entryen_US
pubs.notesEmbargo: Not knownen_US
pubs.organisational-groupBoston Universityen_US
pubs.organisational-groupBoston University, College of Arts & Sciencesen_US
pubs.organisational-groupBoston University, College of Arts & Sciences, Department of Economicsen_US
pubs.publication-statusUnpublisheden_US
dc.identifier.mycv427780


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