We extend the "general model" in Basu and Van (1998) to allow for different types of households, and the model in Swinnerton and Rogers (1999) to allow for a more general utility function. Our new finding is that while in higher-productivity countries with child labor, a more equal income...

This paper analyzes the welfare implications of international spillovers related to productivity gains, changes in market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general-equilibrium model with monopolistic competition, drawing a...