Impullitti, Giammario; Licandro, Omar; Rendahl, Pontus - 2021
We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and … provide a formula to decompose the mechanism. The new insight we provide is that market concentration can be a welfare … increases welfare via productivity improvements. In the calibrated version of the model we show that a trade-induced increase in …