openness to trade affects the aggregate elasticity of substitution of a large country in a Heckscher-Ohlin model with trade in … intermediates and equalization of factor prices. With constant capital stocks, trade enlarges the set of available intermediates in … additional rise in the elasticity of substitution. In two growing economies, trade only rises the elasticity of substitution of …

The static trade literature has concluded that, absent distortions and bystanders, transfer induced movements in the … terms of trade cannot be large enough (under Walrasian stability) to produce the transfer paradox. Dynamic one-sector models … allows for both static and intertemporal terms of trade effects -commodity trade can produce a steady state transfer paradox …

dynamic response of government revenue to a tax cut changes if we allow a Ramsey economy to engage in international trade: the … in the literature: dynamic scoring and the Laffer curve. Our results demonstrate that international trade enhances the …

We show that the specification of technology differences in recent empirical studies of trade is not supported by basic … growth theory and may lead to biased estimates of the pattern of specialization and trade. …

a two-good neoclassical Ramsey growth model with lack of enforcement on international trade contracts we show that … endogenous trading constraints with positive trade may arise on the transition path towards an open-economy steady state. These … provide to high-income agents that have a stronger love-of-variety and investment motives to trade internationally. Investment …

together theories emphasising cultural values, dysfunctional institutions, or impediments to trade as obstacles to financial … employed. We find that trade openness and institutions constraining the political elite from expropriating financiers exhibit a …