We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard … trade model of Dixit–Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show …

exporting into a trade model with heterogeneous firms. Since less firms export to remote markets, the equilibrium fixed costs … are increasing in distance. This creates an additional effect of distance on aggregate trade flows: while the intensive … margin of trade is unaffected, the extensive margin is magnified. This magnification leads to higher predicted distance …

oligopoly and trade. Firms choose capacity followed by prices. If the benefits of capacity investment in a given sector are …

This paper shows that electoral incentives deter politicians from supporting trade liberalization. We focus on all … major trade liberalization bills introduced since the early 1970s in the U.S. Congress, in which House and Senate members … are more likely to support trade liberalization than House representatives. However, this result does not hold for the …

We use 6-digit bilateral trade data to document the effect of WTO/GATT membership on the extensive and intensive … product margins of trade. We construct gravity equations for the two product margins motivated by Chaney (2008). The empirical … results show that standard gravity variables provide good explanatory power for bilateral trade on both margins. Importantly …

Quantitative results from a large class of structural gravity models of international trade depend critically on the … elasticity of trade with respect to trade frictions. We develop a new simulated method of moments estimator to estimate this … elasticity from disaggregate price and trade-flow data and we use it within Eaton and Kortum's (2002) Ricardian model. We apply …

, they face a trade-off between saving on fixed costs per shipments (by shipping large amounts infrequently) and saving on … size and frequency of shipments to fixed costs per shipment. We use a unique dataset of Swiss cross-border trade on the … shipment correlate negatively with language commonalities, trade agreements and geographic proximity. …

enforcement institutions determine international trade patterns. We find that the benefits of judicial quality for the exports of …