This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...

Countries excluded from a regional trade agreement face disadvantages in tariffs when exporting to member countries. In this context, previous studies found that such excluded countries, i.e., outsiders, lower their export prices. In contrast, this study aims to examine not only prices but also...

I develop a quantitative model of trade and multinational production that allows a complete range of multinational activities, including selling only in the host country (horizontal FDI), selling only in the country of origin (vertical FDI), and selling to third countries (export platform FDI)....

Online delivery of digital media content is expected to nullify geographical friction. However, we provide evidence that physical distances still matter for sales on digital distribution platforms. Using data from country-level game sales collected from Steam, the world’s largest computer game...

I develop a quantitative model of trade and MP that allows for a complete range of multinational activities, including selling only in the host country (horizontal FDI), selling only in the country of origin (vertical FDI), and selling to third-party countries (export platform FDI). Using the...

Carbon tariffs are one prominently discussed environmental policy. The proponents stress the carbon tariffs' ability to mitigate the potential negative effect of environmental-friendly production on competitiveness, to avoid carbon leakage and to reduce world carbon emissions. We analyze the...