Alexis Antoniades, Sofronis Clerides, 16 December 2018

Understanding how firms respond to demand shocks has important insights on firm and consumer behaviour. To date, firm responses have been mostly been examined in isolation. This column uses scanner data to explore how Danish firms and their competitors responded to a boycott in ten Arab states in 2006. Results show that Danish firms responded on the intensive margin by lowering prices, while their competitors responded on the extensive margin by introducing new products.

Christopher Meissner, John Tang, 16 June 2017

Economists have long been interested in the dynamics of comparative advantage, but have only recently begun to use detailed product-level data in their analysis. This column examines the Japanese experience after the liberalisation of the 1850s. It suggests that trade costs, destination market demand conditions, and product specific factors played key roles in Japanese exports growth. Roughly 30% of growth in exports between 1880 and 1910 came from shipping new goods to new countries, selling new goods to extant trade partners, and introducing existing products to new countries.

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