How large are the estimated welfare gains from changes in trade costs in a Melitz based trade model compared with models based on Armington and Krugman? We examine model features and scenarios that are important for policy that are unexamined in the literature. Starting with the stylized model...

This paper investigates the emergence of polarisation patterns in the EU during the last 60 years from a structuralist and complexity economics perspective. Based on the results, feasible opportunities for EU policy-making, which aim to counteract a tendency of polarization, are delineated. The...

How large are the estimated gains from trade from a reduction in trade costs in the heterogeneous firms Melitz (M) model compared with the Armington (A) and Krugman (K) models? Surprisingly little is known beyond the one-sector model. This paper analyzes this question using a global trade model...