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...

Which products are potentially produced together? When demand for a product increases, which firms will supply it? Using multi-product production patterns within and across firms, we recover a continuous cost based distance between firms and unproduced products. Higher product distance implies...