the dynamics of the U.S. trade balance. Using sign restrictions based on robust predictions by standard theory, we … rest of the world, and deteriorate net exports; both the U.S. real exchange rate and the U.S. terms of trade appreciate in … response to these shocks. Demand shocks also appreciate the dollar, but have negligible effects on absorption and the trade …

This paper advocates a new way of thinking about goods trade in an open economy macro model. It develops a simple … method for analyzing trade costs that are heterogeneous among a continuum of goods, and it explores how these costs determine … the endogenous decision by a seller of whether to trade a good internationally. This way of thinking offers new insights …

remuneration to innovators for the spillovers they generate. Well-designed IPR regimes imposed at the time of trade liberalization … will be welfare enhancing for both regions relative to trade liberalization without IPR enforcement. …

This paper studies the transitional dynamics in a quality ladder model of endogenous growth in which North-South trade … incorporated into both imitative and innovative processes, which in turn drive domestic technological progress. International trade … numerically to illustrate the transition paths and welfare effects of Southern trade liberalization. While particular welfare …

reconcile these positions by examining the economic impact of hosting mega-events like the Olympics; we focus on trade. Using a … variety of trade models, we show that hosting a mega-event like the Olympics has a positive impact on national exports. This … effect is statistically robust, permanent, and large; trade is around 30% higher for countries that have hosted the Olympics …

We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of … financial policy on the distribution of firm size, welfare, aggregate output, gains from trade, and the real exchange rate in a … effects on the extensive margin of trade, aggregate exports, and the real exchange rate. Increasing the degree of trade …

context of globalization—a term typically used to describe the phenomenon of growing international trade and financial … and volatility has been preserved during the 1990s, both trade and financial integration attenuate this negative … relationship. Specifically, countries that are more open to trade appear to face a less severe tradeoff between growth and …

Does leaving a currency union reduce international trade? We answer this question using a large annual panel data set … experienced economically and statistically significant declines in bilateral trade, after accounting for other factors. Assuming … trade. …