using one particular illustration, the gravity equation for trade, and apply the proposed technique to provide new estimates …

sequential production, in which trade induces a reorganization of production that raises domestic productivity, we show that the …The theoretical result that there are welfare gains from trade is a central tenet of international economics. In a … class of trade models that satisfy a "gravity equation," the welfare gains from trade can be computed using only the open …

Firms face competing needs to expand product variety and reduce production costs. Trade policy affects firm investments … in product variety and production processes differently. Access to larger markets enables innovation to reduce costs … recapture these lost markups. I provide a theory detailing this conflicting impact of trade policy and address welfare gains …

This paper analyses patterns of production across 14 industries in 45 regions from 7 European countries since 1975. We … quantitatively important role in explaining production patterns. The explanation is most successful for aggregate industries, such as … evidence that increasing European integration has weakened the relationship between factor endowments and production patterns …

dynamic response of government revenue to a tax cut changes if we allow a Ramsey economy to engage in international trade: the … in the literature: dynamic scoring and the Laffer curve. Our results demonstrate the internaional trade enhances the …

This paper presents a model of international trade that features heterogeneous firms, relativeendowment differences … across countries, and consumer taste for variety. The paper demonstrates thatfirm reactions to trade liberalization generate … wide range of firmlevelreactions to falling trade costs, the model also shows that, as trade costs fall, firms …

This paper extends a recent class of quantitative models of international trade to incorporate factor mobility within … trade can be augmented to obtain predictions for endogenous changes in the distribution of economic activity across regions … within countries. A region's trade share with itself is no longer a sufficient statistic for the welfare gains from trade …

potential explanation for these puzzles by nesting the above theories in a multi-location model with trade costs. Using a number …

, trade is more sensitive to trade costs if the exporting country only provides a small share of the destination country …'s imports. As a result, trade costs have a heterogeneous impact across country pairs, with some trade flows predicted to be zero …