The Opportunity Costs of Entrepreneurs in International Trade
We show that a trade model with an exogenous set of heterogeneous firms with fixed operating costs has the same aggregate outcomes as a span-of-control model. Fixed costs in the heterogeneous-firm model are entrepreneurs’ forgone wage in the span-of-control model.
You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.
Document Object Identifier (DOI): 10.3386/w22514
Published: Timothy J. Kehoe & Pau S. Pujolàs & Kim J. Ruhl, 2016. "The opportunity costs of entrepreneurs in international trade," Economics Letters, vol 146, pages 1-3. citation courtesy of