Pupato, Germàn; Sand, Ben; Tschopp, Jeanne - 2019
We develop a theory and an empirical strategy to estimate the welfare gains of economic integration in economies with … monopolistic competition with free entry and firm heterogeneity, the median welfare gains in the frictional setting are 6% larger … relative to the frictionless setting. The relative welfare gains are typically more modest under alternative market structures. …