Recent research by
joint with
Xiangjun Ma and Victor Shlychkov
Using
confidential firm-level data from the United States in 2002, we show that
exporting firms charge prices for narrowly defined goods that differ
substantially with the characteristics of firms and export markets. We control
for selection into export markets using a three-stage estimator. We have three
main results. First, we find that that highly productive and skill-intensive
firms charge higher prices, while capital-intensive firms charge lower prices.
Second, the very large correlation between distance and export prices found by Baldwin and Harrigan
(2011) is largely due to a composition effect. Third, U.S. firms charge
slightly higher prices to larger and richer markets, and substantially higher
prices to markets other than Canada and Mexico. Also available as a CES Working Paper.