We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … trade liberalization. While the former leads to more dispersion of economic activity across space, the latter tends to drive …

Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … spending on inputs is affected by trade costs. However, in cross-country data, there is no such positive correlation between … is implicitly assumed in the usual formulation of aggregate CES production functions. Whether trade liberalization …

The paper reviews recent literature on the economics of migration and diasporas, focusing on economic gains and …

Migrants shape market access: first, they reduce international trade frictions and second, they change the geographical … exports and imports to immigrant population and quantifies these effects in a model of inter- and intra-national trade and … migration calibrated to US states and foreign countries. Reducing US migrant population shares back to 1980s levels increases …

We develop a two-country, two-sector model with a continuum of workers to address the link between migration and trade … more likely to be supported by a simultaneous referendum on trade and migration than in one on trade alone? The key to our … analysis is the recognition that for free trade, migration, or trade and migration to be adopted, the relevant policy must pass …

This paper explores the role of pooled-producer, e.g. private label, trade intermediation in shaping the range and … diversity of exports. Direct sales maintain a firm's unique product characteristics (brand equity), whereas trade through an … trade variety for volume, firms face greater competition from the new pooled-products, and intermediaries capture much of …

This paper introduces a model of limited consumer attention into an otherwise standard new trade theory model with love …-of-variety preferences and heterogeneous firms. In this setting, we show that trade liberalization needs not be welfare enhancing if the …, neither a fall in transport costs nor advancements in the global distribution of information need generate gains from trade in …

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

We present a factor-proportions trade model in which heterogeneous firms can offshore intermediate inputs subject to …-proportions trade theory, Heckscher-Ohlin forces operate at the within-industry level, leading to endogenous variation in skill …