@article{Baldwin:12529,
      recid = {12529},
      author = {Baldwin, Richard E and Harrigan, James},
      title = {Zeros, quality, and space trade theory and trade evidence},
      address = {2011},
      number = {ARTICLE},
      abstract = {Bilateral, product-level data exhibit a number of strong  patterns that can be used to evaluate international trade  theories, notably the spatial incidence of "export zeros"  (correlated with distance and importer size), and of export  unit values (positively related to distance). We show that  leading theoretical trade models fail to explain at least  some of these facts, and propose a variant of the Melitz  model that can account for all the facts. In our model,  high quality firms are the most competitive, with  heterogeneous quality increasing with firms' heterogeneous  cost.},
      url = {http://repository.graduateinstitute.ch/record/12529},
}