Exporters and Shocks: Dissecting the International Elasticity Puzzle

摘要: Aggregate exports are not very responsive to real exchange rates, though they respond strongly trade liberalizations, a fact sometimes referred as the International Elasticity Puzzle. We use micro data on rms and for Ireland dissect puzzle. Our identication strategy uses within-rm-year cross-market variation in rates taris identify responses of export participation, revenue product dimension exporting these variables. show that (i) weak response long-time market participants is key behavior aggregate exports, (ii) participation also responds less than taris, but this alone cannot explain puzzle; (iii) be accounted by entry responses. Hence any model can successfully account puzzle needs match intensive margin rms. The views expressed here those authors Federal Reserve Bank Minneapolis or System. This work makes from Central Statistics Oce, Ireland, which CSO copyright. possibility controlled access condential sets premises provided Act 1993. does imply endorsement relation interpretation analysis data. research datasets may exactly reproduce statistical aggregates published CSO. thank sta