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Estimates of the Trade and Welfare Effects of NAFTA

Caliendo, Lorenzo; Parro, Fernando - National Bureau of Economic Research (NBER) - 2012

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...

Persistent link: https://www.econbiz.de/10011096581

Trade Models, Trade Elasticities, and the Gains from Trade

Simonovska, Ina; Waugh, Michael E. - National Bureau of Economic Research (NBER) - 2014

these margins. Theoretically, we show that for fixed trade elasticity, different models predict identical trade flows, but …-flow and tariff data, which imply a common trade elasticity across models. …

Persistent link: https://www.econbiz.de/10010951002

The Elasticity of Trade: Estimates and Evidence

Simonovska, Ina; Waugh, Michael E. - National Bureau of Economic Research (NBER) - 2011

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 … elasticity of roughly four, nearly fifty percent lower than Eaton and Kortum's (2002) approach. This difference doubles the …

Persistent link: https://www.econbiz.de/10008854388

Missing Gains from Trade?

Melitz, Marc J.; Redding, Stephen James - National Bureau of Economic Research (NBER) - 2014

economy domestic trade share and the elasticity of trade with respect to variable trade costs. The measured welfare gains from …

Persistent link: https://www.econbiz.de/10010821967

Comparative Advantage and Optimal Trade Policy

Werning, Iván; Costinot, Arnaud; Donaldson, Dave; … - National Bureau of Economic Research (NBER) - 2013

The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its implications for how nations should conduct their trade policy. For example, should import sectors with weaker comparative advantage be protected more? Conversely, should export sectors...

Persistent link: https://www.econbiz.de/10010796743

Matching and Inequality in the World Economy

Costinot, Arnaud; Vogel, Jonathan - National Bureau of Economic Research (NBER) - 2009

This paper develops tools and techniques to study the impact of exogenous changes in factor supply and factor demand on factor allocation and factor prices in economies with a large number of goods and factors. The main results of our paper characterize sufficient conditions for robust monotone...

Persistent link: https://www.econbiz.de/10005004692

Labor Versus Capital in Trade-Policy Determination: The Role of General-Interest and Special-Interest Politics

Dutt, Pushan; Mitra, Devashish - National Bureau of Economic Research (NBER) - 2003

Trade policy depends on the extent to which the government wants to redistribute income as well as on a country's overall factor endowments and their distribution. While the government's desire to redistribute income itself is dependent on asset distribution, it is to a large extent also driven...

Persistent link: https://www.econbiz.de/10005580102

Political Ideology and Endogenous Trade Policy: An Empirical Investigation

Dutt, Pushan; Mitra, Devashish - National Bureau of Economic Research (NBER) - 2002

In this paper, we empirically investigate how government ideology affects trade policy. The prediction of a partisan, ideology-based model (within a two-sector, two-factor Heckscher-Ohlin framework) is that left-wing governments will adopt more protectionist trade policies in capital rich...

Persistent link: https://www.econbiz.de/10005710577

An Elementary Theory of Comparative Advantage

Costinot, Arnaud - National Bureau of Economic Research (NBER) - 2009

Comparative advantage, whether driven by technology or factor endowment, is at the core of neoclassical trade theory. Using tools from the mathematics of complementarity, this paper offers a simple, yet unifying perspective on the fundamental forces that shape comparative advantage. The main...

Persistent link: https://www.econbiz.de/10005720260

What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas

Costinot, Arnaud; Donaldson, Dave; Komunjer, Ivana - National Bureau of Economic Research (NBER) - 2010

comparative advantage. Using trade and productivity data from 1997, we estimate that, ceteris paribus, the elasticity of bilateral …

Persistent link: https://www.econbiz.de/10008532146