-moment shocks lead to increases in trade relative to GDP in recessions. Empirically, using detailed product-level data in the motor …

We study the implications for international relative prices of a simple Ricardian model of international trade with … trade costs and imperfect competition with variable markups are needed to account for pricing-to-market at the firm and … aggregate levels. We also show that international trade costs are essential, but pricing-to-market is not, to account for a high …

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import … to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate …

general equilibrium model of international trade with heterogeneous firms and non-homothetic consumer preferences that …

be taken to the data with international trade statistics. Combining data from the U.S. Census Bureau's Related Party … Trade database and estimates of U.S. import demand elasticities from Broda and Weinstein (2006), we find empirical evidence …

We show that endogenous firm selection provides a new welfare margin for heterogeneous firm models of trade (relative … to homogeneous firm models). Under some parameter restrictions, the trade elasticity is constant and is a sufficient … statistic for welfare, along with the domestic trade share. However, even small deviations from these restrictions imply that …