Income inequality in Germany has been continuously increasing during the past 20 years. In general, this is understood … affect per capita incomes, which has repercussions for the income distribution even if wages remain constant. The aim of this …

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 …

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 …

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 …

Standard explanations for the observed income heterogeneity within communities rely on differences of preferences … households differ according to income only, and homes are identical within locations. Households choose whether to own or rent … generate income heterogeneity across homeowners within neighborhoods, in particular in cities that experience strong positive …

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. …

–horizontal versus vertical– within the European Union and the relevance of trade integration as a potential determinant of … investment flows over the period 1995-2009. We capture trade integration by estimating the magnitude and evolution of the home … robust relationship of complementarity between trade integration and FDI provides at least one argument in support of …

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 …