Bertoletti, Paolo; Epifani, Paolo - In: Journal of International Economics 93 (2014) 2, pp. 227-238
We study the competitive and reallocation effects of trade opening in monopolistic competition. To this purpose, we generalize the Melitz (2003) setup with heterogeneous firms and fixed and variable trade costs beyond the CES to the case of additively separable utility functions. We find that...