A large literature has shown that geographic frictions reduce trade, but has not clarified precisely why. In this paper, we provide some insight into why such frictions matter by examining what parts of trade these frictions reduce most. Using data that track manufacturers' shipments within the...

We combine matched Danish worker-firm-trade data with detailed individual-worker training data. We find: 1) workers displaced from offshoring firms take up more vocational-training and have a harder time getting re-attached to the labor-force than other displaced workers, and they also exhibit...

Computable general equilibrium (CGE) models of international trade typically rely on econometrically estimated trade elasticities as model inputs. These elasticities vary by as much as an order of magnitude and there is no consensus on which elasticities to use. We review the literature...

We examine a generalized version of Flam and Helpman [Flam, H., Helpman, E., 1987. Vertical Product Differentiation and North-South Trade. American Economic Review, 77, 810-822.] in which consumption prices for quality differentiated goods are rising in household income. We provide propositions...

Wolf demonstrates that trade within the United States appears substantially impeded by state borders. We revisit this finding with improved data. We show that much intranational home bias can be explained by wholesaling activity. Shipments by wholesalers are much more localized within states...

We examine a generalized version of Flam and Helpman [Flam, H., Helpman, E., 1987. Vertical Product Differentiation and North-South Trade. American Economic Review, 77, 810-822.] in which consumption prices for quality differentiated goods are rising in household income. We provide propositions...

We employ data that match the population of Danish workers to the universe of private-sector Danish firms, with product-level trade flows by origin- and destination-countries. We document new stylized facts about offshoring and instrument for offshoring and exporting. Within job spells,...

Computable general equilibrium (CGE) models of international trade typically rely on econometrically estimated trade elasticities as model inputs. These elasticities vary by as much as an order of magnitude and there is no consensus on which elasticities to use. We review the literature...