Philipp J.H. Schröder

Exporter Productivity Premia

Why is it that exporter productivity premia (EPP) differ so widely in size? Philipp J. H. Schröder et al. take this question to the theory and to the data (CESifo Working Paper Series 4630). They derive the sectoral EPP in a standard heterogeneous firms trade model and apply the insights from the model to 13 years of data for all Danish manufacturing firms. They show that a significant share of the observed variation in EPPs across sectors, and hence across countries, can be explained by the variation in productivity dispersion, trade costs and the elasticity of substitution.

During his stay at CESifo, Philipp Schröder will conduct theoretical work on modelling trade policies and their interaction with models of international trade that feature heterogeneous firms. One part of this work examines the rational and welfare implications of tax financed export promotion programmes in general equilibrium. In a different strand of work, he tackles the inclusion of non-tariff trade barriers, such as diverging technical standards (and their harmonisation) in a theoretical framework aiming at empirical testing. This latter project develops foundations for modelling deep-trade integration, such as TTIP or the European Single Market.

Philipp Schröder is Professor in Economics at the Department of Economics and Business at Aarhus BSS, a member of Konkurrencerådet (Board of the Danish Competition and Consumer Authority), director at the Tuborg Research Centre for Globalisation and Firms and a Research Fellow of the CESifo Research Network. He has previously worked as a consultant at McKinsey & Company and as a Senior Economist at the Research Institute DIW Berlin. Mr Schröder received his Master's degree from University of Warwick and holds a PhD in Economics from the University of Aarhus.