Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

This paper introduces a model of limited consumer attention into an otherwise standard new trade theory model with love …-of-variety preferences and heterogeneous firms. In this setting, we show that trade liberalization needs not be welfare enhancing if the …, neither a fall in transport costs nor advancements in the global distribution of information need generate gains from trade in …

of the freeness-of-trade variable is ambiguous. Because the latter is an indicator for integration in the world markets …, we conclude that more integration may neutralize the negative interregional distribution effects of trade. …We study the effect of international trade and freeness of trade (openness) on interregional inequality within …

Trade costs are a crucial in new economic geography (NEG) models. The unavailability of actual trade costs data … requires the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs … specification used. This paper shows that the specification of trade costs matters. Estimations of a NEG wage equation for a sample …

The literature on trade liberalization and environment has not considered federal structures. This paper shows how the … design of environmental policy in a federal system has implications for the effects of trade reform. Trade liberalization … with trade liberalization if federal taxes are used. …

This paper studies the evolution of trade freeness and of the agglomeration of production, as well as their … of previous aggregate analyses which find that an inverse relationship between trade costs and agglomeration holds in …

What has driven trade booms and trade busts in the past and present? We derive a micro-founded measure of trade … frictions from leading trade theories and use it to gauge the importance of bilateral trade costs in determining international … trade flows. We construct a new balanced sample of bilateral trade flows for 130 country pairs across the Americas, Asia …

Barriers to international trade are known to be large but due to data limitations it is hard to measure them directly … trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is … consistent with a broad range of leading trade theories including Ricardian and heterogeneous firms models. In an application I …

This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an … integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral … trade agreements. The paper identifies also several questions for further research. …