Ana Cecilia Fieler | Ph.D. Candidate
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“Non-Homotheticity and Bilateral Trade: Evidence and a Quantitative Explanation”
Econometrica, 79(4), pp. 1069-1101, July 2011, appendix, program and data files


"Trade, Quality Upgrading, and Input Linkages: A Theory with Evidence from Colombia," with Marcela Eslava and Daniel Yi Xu, July 2017, appendix, data package, The American Economic Review, 108(1), pp. 109-146January 2018


"(Indirect) Input Linkages" American Economic Review: Papers & Proceedings, 105(5), p. 662-666, 2015


"Gravity of Unit Values" with Jonathan Eaton

We introduce quality differentiation into a standard quantitative, general equilibrium model of international trade. The framework allows bilateral trade to vary both at the margin of quantity and of unit value. We estimate the parameters of the model using bilateral data on trade flows and on unit values in trade. The model captures a number of regularities in the data.


"Escaping Import Competition and Backward Tariffs" with Ann Harrison

We identify a new source of productivity gains from trade reform: Downstream tariff changes feed back to input suppliers.  For China, these ``backward tariff'' reductions are the biggest source of productivity gains from the trade reform. We formalize the main mechanism in a theoretical model. In the model, firms invest in product differentiation to escape competition. Markups in the downstream sector fall, consistent with the evidence. As firms invest in product differentiation, they demand more differentiated inputs. As a result, domestic upstream suppliers also invest.    We provide empirical support for this mechanism: As tariffs fall, both final goods providers and suppliers upgrade to higher skill-intensive sectors and introduce new goods.


"Home-Market Effects on Innovation" with Justin Caron and Thibault Fally
(draft coming soon)

We estimate the home-market effect and study its implications for inequality within and across countries. The home-market effect occurs when exogenous differences in demand across countries generate endogenous differences in comparative advantages through technical change that is specific to a country and sector. Estimating it has proved difficult because econometricians do not observe differences in demand. They observe only expenditures, which depends on supply through prices. Our solution is to exploit non-homotheticity in preferences to construct instruments for the location of production, which determines comparative advantage through the home-market effect.

Motivated by data, the model features factor-biased technologies and imperfect technology diffusion.  Consistent with data, income-elastic goods in the model are endogenously more skill intensive within countries.

Home-market effects generate across-country inequalities because countries differ in their access to larger, richer markets. They generate within-country inequalities through skill-biased technical change. We use counterfactual simulations using the estimated model to evaluate the effects of trade and technology diffusion on inequalities.

"Growth and Product Cycles"

We propose propose a Schumpeterian model of economic growth where sector-specific innovations lead firms and workers to reallocate across sectors. The model features constant aggregate growth, and it is able to replicate novel data facts about heterogeneous growth in value added, number of firms, and number of workers across sectors. At the micro-level, the model generates product cycles documented by Gort, Klepper (1982) and Klepper (1996).



Older papers & other publications

“Mapping the Match between UK Exports and Demand in Emerging Markets: Final Report for the Asia Task Force”, joint with Jonathan Eaton and Ana Maria Santacreu, a report prepared for the United Kingdom Trade & Investment ( UK government organization)


“Quality Differentiation in International Trade: Theory and Evidence” working paper, 2012, appendix


“Models of Repeated Partnership with Limited Information” mimeo, 2004






Copyright 2007 Ana Cecilia Fieler. Site by CM.