We build a two-country heterogenous-agent non-Ricardian model featuring asset scarcity and financial frictions in international capital markets. Due to the non-Ricardian nature of our framework, a demand for liquidity emerges and the supply of bonds matters. We show that shocks affecting the...

We propose a sufficient statistics approach to measuring Ricardian comparative advantage based on a quantitative trade model simultaneously featuring cross-country differences in productivity, factor prices, and market size, as well as monopolistic competition, endogenous markups, and firm...