Krugman's (1979, 1980) monoplistic competition model of trade showed that countries with more similar per-capita GDP … trade more with each other. Does this mean that developing countries shift trade towards developed countries as a result of … high economic growth? The results reported in this paper challenge the link between per-capita GDP and trade predicted by …

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach … combines the uncertainty shock idea of Bloom (2009) with a model of trade, extending the idea to the open economy. Firms import … international trade flows than in domestic activity. We confront the model with newly-compiled U.S. import data and industrial …

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall …. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize …. We show analytically that an analysis based on iceberg costs necessarily underestimates the welfare gains from trade …