The influence of data aggregation on applied trade theory may not be generally appreciated. Aggregation can have a direct impact on the direction of trade, factor intensity, factor abundance, factor substitution, product differentiation, and intra-industry trade. This paper develops some...

The trade balance is built directly into a factor proportions model of produc - tion. A wealth stockpile of the exported good is maintained, growing when the small open economy has a surplus and shrinking with a deficit. Income and prices determine consumption of exports and imports, while...

This paper examines possible adjustments to a change in a binding quota in the context of an international duopoly. Consumers directly value embodied quality of goods, which is chosen simultaneously with quantity, and before quan - tity in a sequential model. Possible responses to a small change...