What is the impact on intranational trade and regional economic outcomes when the quality and lane capacity of an existing paved road network is expanded significantly? This paper investigates this question for the case of Turkey, which undertook a large-scale public investment in roads during...

How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external information technology demand shock and detailed internal migration data from India, this paper first documents that both information technology employment and engineering enrollment responded...

This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The...

Using a micro-level dataset of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of...

Using a micro-level dataset of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of...

Poor domestic transportation infrastructure in developing countries is often cited as an important impediment for accessing international markets. Yet, evidence on how transportation infrastructure improvements affect the volume and composition of exports is scarce. Drawing on the large-scale...

When trade is costly within countries, international trade leads to concentration of economic activity in locations with good access to foreign markets. Costly trade within countries also makes it hard for remote locations to gain from international trade. We investigate the role of these forces...

This paper explores the combined effects of reductions in trade frictions, tariffs, and firing costs on firm dynamics, job turnover, and wage distributions. It uses establishment-level data from Colombia to estimate an open economy dynamic model that links trade to job flows in a new way. The...

as in Melitz (2003). This increases …firms´ incentives to hire or …re workers as idiosyncratic productivity shocks occur, thereby increasing job turnover and, because of the search frictions, spreading the wage distribution. Preliminary simulations at plausible parameter values suggest that...