In this paper it is argued that the domestic division of labor and trade is organized according to the same principle as the international division of labor and trade – the Ricardian comparative advantages. After all, the ultimate source of these comparative advantages is the individual. The...

In a Ricardian model with CES preferences and general distributions of industry efficiencies, the sources of the welfare gains from trade can be precisely decomposed into a selection and a reallocation effect. The former is the change in average efficiency due to the selection of industries that...

En la era de la globalización, integración no solo denota apertura; implica también la red de conexiones que, con creciente intensidad, se teje entre las economías. Medir la globalización requiere, pues, prestar atención tanto a la intensidad de las relaciones como a su estructura. El...

International trade generates higher overall output by redirecting jobs to those who create the most added value, that is, to those who maximize their productive abilities. Put simply, the benefits of free trade can be summarized as: quot;Do what you do best. Trade for the rest.quot; But times...

This paper reexamines the standard welfare analysis of export subsidies under perfect competition, pointing out that the prevailing textbook analysis ignores the incentives of foreign producers to sell at the highest price possible, which may be in the domestic market. This substantially alters...