Boehm, Christoph E.; Levchenko, Andrei A.; … - National Bureau of Economic Research - 2024
Yes. We state closed-form expressions for steady state gains from trade that apply in a class of dynamic trade models …. The gains are a function of the domestic trade share and the long-run elasticity of trade with respect to iceberg trade … long-run elasticity cannot be estimated in one step by relying on tariff variation as shifters of trade costs. We show …