Isabelle Méjean

General seminars
amse seminar

Isabelle Méjean

Frictions and adjustments in firm-to-firm trade
Joint with
François Fontaine, Julien Martin

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

5-9 boulevard Maurice Bourdet
13001 Marseille

Monday, February 12 2024| 11:30am to 12:45pm

Nicolas Clootens: nicolas.clootens[at]
Romain Ferrali: romain.ferrali[at]


We build a dynamic Ricardian model of trade with search frictions. The model generates an endogenous network of firm-to-firm trade relationships and price bargaining within and across relationships. Following a foreign shock, firms sourcing inputs from abroad have three options: absorb the shock, renegotiate with their current supplier or switch to a supplier in another country. The size of these adjustment margins depends on the interplay between Ricardian comparative advantages, search frictions and firms’ individual characteristics. We exploit French firm-to-firm trade data to estimate the model structurally and quantify the relative importance of these adjustment margins at sector-country level.