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Can you jump this high? Quantifying barriers to market participation

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  • Guerini, Mattia
  • Musso, Patrick
  • Nesta, Lionel

Abstract

We develop a new method to estimate the parameters of threshold distributions for market participation based on an agent-specific attribute and its decision outcome. This method requires few behavioral assumptions, is not data demanding, and can adapt to various parametric distributions. An application to export decisions by French firms shows that threshold distributions are generally right-skewed. We then reveal the asymmetric effects of past policies over different quantiles of the threshold distributions.

Suggested Citation

  • Guerini, Mattia & Musso, Patrick & Nesta, Lionel, 2021. "Can you jump this high? Quantifying barriers to market participation," Economic Modelling, Elsevier, vol. 98(C), pages 192-217.
    • Handle: RePEc:eee:ecmode:v:98:y:2021:i:c:p:192-217
    DOI: 10.1016/j.econmod.2021.02.017
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    Cited by:

    1. Fontanelli, Luca & Guerini, Mattia & Napoletano, Mauro, 2023. "International trade and technological competition in markets with dynamic increasing returns," Journal of Economic Dynamics and Control, Elsevier, vol. 149(C).

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    More about this item

    Keywords

    Parametric distributions of thresholds; Maximum likelihood estimation; Fixed costs; Export decision;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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