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Identifying vertically differentiated products
Authors:Paulo Bastos  Joana Silva
Affiliation:1. Research Department, Inter-American Development Bank, United States;2. The World Bank, 1818 H Street, NW, Washington DC 20433, United States;1. Laboratory of Pharmacology, Medical School, National and Kapodistrian University of Athens, Athens, Greece;2. Laboratory of Physiology, Medical School, National and Kapodistrian University of Athens, Athens, Greece;1. Physics Division, Oak Ridge National Laboratory, Oak Ridge, TN 37831-6354, USA;2. Department of Physics and Astronomy, University of Tennessee, Knoxville, TN 37996-1200, USA;3. National Institute for Computational Sciences, University of Tennessee, Knoxville, TN 37996, USA;4. National Center for Computational Sciences, Oak Ridge National Laboratory, Oak Ridge, TN 37831-6354, USA
Abstract:Rauch (1999) introduced a product classification scheme that has since been widely used to empirically identify differentiated goods. Using firm-level data on export unit values, we provide direct evidence that this classification is well suited for capturing quality differentiation.
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