EXPORTERS IN CROSS SECTION, STOCK MARKETS, AND WILLINGNESS TO PAY FOR PESTICIDES' ENVIRONMENTAL FEATURES
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How do producers that export their goods directly differ from those that export through trade intermediaries? We take a standard model of trade with heterogeneous firms and add heterogeneity in quality to the usual heterogeneity in productivity. We model trade intermediaries as increasing marginal costs but decreasing fixed costs of exporting. We find that firms with the highest quality-adjusted productivity levels choose to export directly, while those with the lowest levels do not export at all; those in between use trade intermediaries. Quantitatively, we consider the effects of different distributions over quality and productivity draws and make comparisons with stylized facts in the literature.