Measured Gains from International Trade
We study the implications of trade liberalizations on real GDP and real consumption in a widely-used class of models in international trade. We calculate the change in aggregate quantities in response to a reduction in international trade costs, following as closely as possible the procedures used by statistical agencies in the US. Real GDP rises in response to a reduction in variable trade costs if measured producer price indices partly capture the decline in trade costs. The change in measured real consumption from a change in trade costs coincides, up to a first-order approximation, with the change in welfare of the representative consumer.
Year of publication: |
2011
|
---|---|
Authors: | Cravino, Javier ; Burstein, Ariel |
Institutions: | Society for Economic Dynamics - SED |
Saved in:
Saved in favorites
Similar items by person
-
Importing Skill-Biased Technology
Vogel, Jonathan, (2011)
-
Measured Aggregate Gains from International Trade
Burstein, Ariel, (2015)
-
Importing Skill-Biased Technology
Burstein, Ariel, (2011)
- More ...