rest of the world relative to the status quo. However, there is substantial heterogeneity across the 134 geographical …

simulation methods to explore the properties of the model, since it has no closed form solution. Our analysis provides an …

) existence can also be an issue. Here we use numerical simulation methods. We first consider world with service trade autarky in … removing period by period budget constraints for domestic consumers. In such a world, if nonzero tariffs apply to spatial trade … ongoing tariff negotiations. We then expand the model to capture a more complex world where costly intermediation services can …