Keynesian model with multiple stages of production. Within the family of simple monetary policy rules with commitment, a rule … that targets separate producer price inflation at different production stages, in addition to output gap and real exchange … CPI inflation alone. As the production chain becomes longer, the optimal weight on PPI inflation in the policy rule that …

Common wisdom dictates that uncertainty impedes trade--we show that uncertainty can fuel more trade in a simple general … equilibrium trade model with information frictions. In equilibrium, increases in uncertainty increase both the mean and the … variance in returns to exporting implying that trade can increase or decrease with uncertainty depending on preferences. Under …

Specialization alters the incidence of manufacturing trade costs to buyers and sellers, with pro-and anti … predicted local trade to predicted frictionless local trade) and the Total Factor Productivity effect of changing incidence. A …

-dimensional connections between globalization and innovation. We develop a model that features many of those mechanisms that connect trade and … innovation. It features the joint selection of firms into innovation and international market participation (in our model, we …

Starting with Romer [1987] and Rivera-Batiz-Romer [1991] economists have been able to model how trade enhances growth … through the creation and import of new varieties. In this framework, international trade increases economic output through two … channels. First, trade raises productivity levels because producers gain access to new imported varieties. Second, increases in …

This paper develops a methodology for predicting the impact of trade liberalization on exports by industry (3-digit … ISIC) based on the pre-liberalization distribution of exports by product (5-digit SITC). Using the results of Kehoe and … Ruhl (2013) that much of the growth in trade after trade liberalization is in products that are traded very little or not …

This paper studies the evolution of China's production and trade patterns during its integration into the global … economy. We document and explain new facts concerning changes in production and exports at the industry and firm levels using … that capital deepening made China's production and exports more capital-intensive, although labor-biased productivity …

characterized by higher mean and higher variance in the growth of product quality. Our findings suggest a mean-variance trade-off in …This paper studies the cross-country patterns of risky innovation and growth through the lens of international trade … product quality improvements along the development path. Increases in financial depth do not imply lower variability of …

advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a …In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within … their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market …

This study explores the interaction between trade and geography in shaping the Islamic economic doctrine. We build a … model where an unequal distribution of land quality in presence of trade opportunities conferred differential gains from … trade across regions, fostering predatory behavior by groups residing in the poorly endowed territories. We show that in …