Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - 2021
We develop a new general equilibrium model of trade with heterogeneous firms, variable demand elasticities and … endogenously determined wages. Trade integration favors wage convergence, intensifies competition, and forces the least efficient …, our model is well suited to study the impacts of trade integration on aggregate productivity and factor prices. Using …