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Productivity Spillovers, Terms of Trade and the "Home Market Effect"

Corsetti, Giancarlo; Martin, Philippe J.; Pesenti, Paolo A. - 2021

This paper analyzes the welfare implications of international spillovers related to productivity gains, changes in market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general-equilibrium model with monopolistic competition, drawing a...

Persistent link: https://www.econbiz.de/10013220817

Monopoly Power and Endogenous Product Variety : Distortions and Remedies

Bilbiie, Florin; Ghironi, Fabio Pietro; Melitz, Marc J. - 2021

The inefficiencies related to endogenous product creation and variety under monopolistic competition are two-fold: one static—the misalignment between consumers and producers regarding the value of a new variety; and one dynamic—time variation in markups. Quantitatively, the welfare costs of...

Persistent link: https://www.econbiz.de/10013232463

Restoring the Product Variety and Pro-Competitive Gains from Trade with Heterogeneous Firms and Bounded Productivity

Feenstra, Robert C. - 2014

The monopolistic competition model in international trade offers three sources of gains from trade that do not arise in competitive models: expansion in product variety; a pro-competitive reduction in the markups charged by firms; and the self-selection of more efficient firms into exporting....

Persistent link: https://www.econbiz.de/10013060264

Beyond Competitive Devaluations : The Monetary Dimensions of Comparative Advantage

Bergin, Paul R. - 2019

Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a...

Persistent link: https://www.econbiz.de/10012871944

Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture

Hummels, David; Skiba, Alexandre - 2021

We model demand for quality differentiated goods to derive a relationship between trade costs and the quality composition of trade. Detailed data on traded goods' prices, quantities and shipping costs for many importers and exporters are used to test these predictions. These data provide a...

Persistent link: https://www.econbiz.de/10013245093

Technology and Geography in the Second Industrial Revolution : New Evidence from the Margins of Trade

Huberman, Michael - 2015

illustrate these claims. In line with new trade theory, the effect of trade on productivity was mediated by sector-level firm … heterogeneity and product differentiation. In new technology sectors, like tramways, the high degree of firm heterogeneity amplified … of firm uniformity muted the effect of trade. Into the twentieth century, old staples trumped new technology sectors, per …

Persistent link: https://www.econbiz.de/10013030134

Measuring the Gains from Trade Under Monopolistic Competition

Feenstra, Robert C. - 2010

Three sources of gains from trade under monopolistic competition are: (i) new import varieties available to consumers; (ii) enhanced efficiency as more productive firms begin exporting and less productive firms exit; (iii) reduced markups charged by firms due to import competition. The first...

Persistent link: https://www.econbiz.de/10013149703

Inequality and Trade

Mitra, Devashish; Trindade, Vitor - 2022

inequality. Our theory formalizes as well as modifies Linder's conjecture about the relationship between intraindustry trade and …

Persistent link: https://www.econbiz.de/10014074568

Were Trade and Factor Mobility Substitutes in History?

Collins, William J.; O'Rourke, Kevin Hjortshøj; … - 2021

Trade theorists have come to understand that their theory is ambiguous on the question: Are trade and factor flows …

Persistent link: https://www.econbiz.de/10013218517

The Tip of the Iceberg : A Quantitative Framework for Estimating Trade Costs

Irarrazabal, Alfonso A. - 2013

Casual empiricism suggests that additive trade costs, such as quotas, per-unit tariffs, and, in part, transportation costs, are prevalent. In spite of this, we have no broad and systematic evidence of the magnitude of these costs. We develop a new empirical framework for estimating additive...

Persistent link: https://www.econbiz.de/10013078862