We study the fiscal implications of trade liberalization in a North-South trade model with nonhomothetic preferences. Combining a Ricardian trade model with a continuum of competitive goods and a public good, nonhomothetic preferences imply that both the global income distribution and the local...

We study the effects of preferential trade agreements (PTA) in a model where income matters for consumption patterns. We develop a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country...

We study the effects of hub and spoke liberalization in a model where income matters for consumption patterns. We use a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country has a...

We develop a Ricardian trade model with a continuum of goods that are ordered according to priority in consumption. Go o ds at the lower end of the spectrum are consumed by all households and when income increases households add higher-ranked goods to their consumption baskets. We apply this...