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The Linear Algebra of Economic Geography Models

Kleinman, Benny; Liu, Ernest; Redding, Stephen - National Bureau of Economic Research - 2023

We provide sufficient statistics for nominal and real wage exposure to productivity shocks in a constant elasticity economic geography model. These exposure measures summarize the first-order general equilibrium elasticity of nominal and real wages in each location with respect to productivity...

Persistent link: https://www.econbiz.de/10014322852

Agglomeration, Integration and Tax Harmonization

Baldwin, Richard E. - 2002

We show that agglomeration forces can reverse standard international-tax-competition results. Closer integration may … agglomeration forces create quasi-rents that can be taxed without inducing delocation. This suggests that the tax game is something … 'periphery' countries. Since agglomeration rents are a bell-shaped function of the level of integration, the equilibrium tax gap …

Persistent link: https://www.econbiz.de/10012469418

An Energy-centric Theory of Agglomeration

Moreno-Cruz, Juan - 2016

This paper sets out a simple spatial model of energy exploitation to ask how the location and productivity of energy resources affects the distribution of economic activity across geographic space. By combining elements from energy economics and economic geography we link the productivity of...

Persistent link: https://www.econbiz.de/10012455716

Market Size and Trade in Medical Services

Dingel, Jonathan I.; Gottlieb, Joshua D.; Lozinski, Maya; … - National Bureau of Economic Research - 2023

We measure the importance of increasing returns to scale and trade in medical services. Using Medicare claims data, we document that "imported" medical care -- services produced by a medical provider in a different region -- constitute about one-fifth of US healthcare consumption. Larger regions...

Persistent link: https://www.econbiz.de/10014247951

Combinatorial Discrete Choice : A Quantitative Model of Multinational Location Decisions

Arkolakis, Costas; Eckert, Fabian; Shi, Rowan - National Bureau of Economic Research - 2023

We introduce a general quantifiable framework to study the location decisions of multinational firms. In the model, firms choose in which locations to pay the fixed costs of setting up production, taking into account potential complementarities among production locations. The firm's location...

Persistent link: https://www.econbiz.de/10014437008

Dynamic Models, New Gains from Trade?

Boehm, Christoph E.; Levchenko, Andrei A.; … - National Bureau of Economic Research - 2024

Yes. We state closed-form expressions for steady state gains from trade that apply in a class of dynamic trade models that includes dynamic versions of the Krugman (1980), Melitz (2003), and customer capital (e.g., Arkolakis, 2010) models. The gains are a function of the domestic trade share and...

Persistent link: https://www.econbiz.de/10014576594

Lessons from U.S.-China Trade Relations

Caliendo, Lorenzo; Parro, Fernando - National Bureau of Economic Research - 2022

We review theoretical and empirical work on the economic effects of the United States and China trade relations during the last decades. We first discuss the origins of the China shock, its measurement, and present methods used to study its economic effects on different outcomes. We then focus...

Persistent link: https://www.econbiz.de/10013361989

Bilateral Economies of Scope

Li, Yao Amber - 2024

International transactions are costly because they require investments in logistics, contracts, and the acquisition of local institutional knowledge. We posit that a portion of the fixed costs of entering a specific export market can be used toward costs of acquiring imports from that same...

Persistent link: https://www.econbiz.de/10015056127

Does Trade Raise Income? Evidence from the Twentieth Century

Irwin, Douglas A. - 2000

Efforts to estimate the effects of international trade on a country's real income have been hampered by the failure to account for the endogeneity of trade. Frankel and Romer recently use a country's geographic attributes - notably its distance from potential trading partners - as an instrument...

Persistent link: https://www.econbiz.de/10012471005

Economic Geography and the Efficiency of Environmental Regulation

Hollingsworth, Alex; Jaworski, Taylor; Kitchens, Carl T.; … - National Bureau of Economic Research - 2022

We develop a spatial equilibrium model to evaluate the efficiency and distributional impacts of the leading air quality regulation in the United States: the National Ambient Air Quality Standards (NAAQS). We link our economic model to an integrated assessment model for air pollutants which...

Persistent link: https://www.econbiz.de/10013172144

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