long-run effect on the interest rate, the capital-labor ratio, and labor productivity, while it increases work hours due to … certain conditions, also to a lower capital-labor ratio, lower productivity and lower wages …

In this paper we explore the effect of trade policy on productivity and welfare in the now standard model of firm … first establish that welfare can be decomposed into four terms: productivity, terms of trade, variety and curvature, where … best allocation. We also show that an export subsidy generates an increase in productivity, but given the negative joint …

: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

and productivity for changes in a country's terms of trade. We apply this procedure to a comparison of two major …