Helpman, Melitz and Rubinstein (2008) derive gravity equations to estimate effects of trade barriers on the intensive … and extensive margins of trade. They exploit the frequency of zeros in aggregate bilateral trade data to identify effects … extensive margin when data contain only positive trade flows. We also control for the pervasive presence of heteroscedasticity …

costs indicate that a large share of the simulated increase in trade is attributable to declines in the firm's entry cost …

In this paper, we merge the heterogenous firm trade model of Melitz (2003) with the Ricardian model of Dornbusch …, Fisher and Samuelson (DFS 1977) to explain how the pattern of international specialization and trade is determined by the … interaction of comparative advantage, economies of scale, country sizes and trade barriers. The model is able to capture the …

of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade …

Gravity equations have been used for more than 50 years to estimate ex post the partial effects of trade costs on … international trade flows, and the well-known -- and traditionally presumed exogenous -- “trade-cost elasticity” plays a central … role in computing general equilibrium trade-flow and welfare effects of trade-cost changes. This paper addresses …

-offshoring firms emerges in our model because, in contrast to textbook models of trade with heterogeneous producers, we allow firms to …

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 …

This paper develops a model of trade and CO2 emissions with heterogenous firms, where firms make abatement investments … turn, lower emissions per output. We show that the overall effect of trade is to reduce emissions. Trade weeds out some of … to more productive and cleaner exporters. The overall effect of trade is therefore to reduce emissions. We test empirical …