Home > Term: Melitz model
Melitz model
A heterogeneous firm model in which firms employ labor as their only input, firm productivity is chosen randomly, and firms die with some constant probability. With trade, only firms with productivity above some cutoff level are able to export. Due to Melitz (2003).
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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Creator
- Noroc
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