Country Size, International Trade, and Aggregate Fluctuations in Granular Economies
---- Acknowledgments ----
We are grateful to the editor (Sam Kortum), two anonymous referees, Michael Alexeev, Stijn Claessens, Fabio Ghironi, Gordon Hanson, Chris House, Marc Melitz, Andy Rose, Matthew Shapiro, Linda Tesar, and workshop participants at various institutions for helpful suggestions, and to Edith Laget, Lin Ma, and Ryan Monarch for expert research assistance. Levchenko thanks the National Science Foundation for financial support under grant SES-0921971. The views expressed in this paper are those of the authors and should not be attributed to the International Monetary Fund, its Executive Board, its management, or the National Bureau of Economic Research. The Supplementary Web Appendix to this paper is available at http://alevchenko.com/diGiovanni_Levchenko_granular_web_appendix.pdf.