We argue that the welfare gains from trade in new models with micro-level margins exceed those in frameworks without … these margins. Theoretically, we show that for fixed trade elasticity, different models predict identical trade flows, but … different patterns of micro-level price variation. Thus, given data on trade flows and micro-level prices, different models have …

more than half of gross profits. We use our results to simulate the effects of a counterfactual decline in bilateral trade …

We survey recent literature on the causes of the collapse in international trade during the 2008-2009 global recession …. We argue that the evidence points to the collapse in aggregate expenditure, concentrated on trade-intensive durable goods …, as the main driver of the trade collapse. Inventory adjustment likely amplified the impact of these expenditure changes …

This paper develops a methodology for predicting the impact of trade liberalization on exports by industry (3-digit … Ruhl (2013) that much of the growth in trade after trade liberalization is in products that are traded very little or not … growth. Using our methodology, we develop predictions for industry-level changes in trade for the United States and Korea …

Quantitative results from a large class of structural gravity models of international trade depend critically on the … elasticity of trade with respect to trade frictions. We develop a new simulated method of moments estimator to estimate this … elasticity from disaggregate price and trade-flow data and we use it within Eaton and Kortum's (2002) Ricardian model. We apply …

We build into a Ricardian model sectoral linkages, trade in intermediate goods, and sectoral heterogeneity in … production to quantify the trade and welfare effects from tariff changes. We also propose a new method to estimate sectoral trade … elasticities consistent with any trade model that delivers a multiplicative gravity equation. We apply our model and use our …

with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods … the equilibrium of the model without estimating productivities, reallocation frictions, or trade frictions, which are … usually difficult to identify. We use the model to study the dynamic labor market outcomes of aggregate trade shocks. We …