Burstein, Ariel; Cravino, Javier - In: American Economic Journal: Macroeconomics 7 (2015) 2, pp. 181-218
We examine the implications of workhorse trade models for how aggregate productivity, real GDP and real consumption, as measured by statistical agencies, respond to changes in trade costs. In a range of models, changes in measured productivity are equal to the inverse of an export-share weighted...