Biographical note: Richard Baldwin is Professor of International Economics at the Graduate Institute of International Economics in Geneva. Rikard Forslid is Associate Professor of Economics at Stockholm University. Philippe Martin is Professor of Economics at the University of Paris 1...

Research on the spatial aspects of economic activity has flourished over the past decade due to the emergence of new theory, new data, and an intense interest on the part of policymakers, especially in Europe but increasingly in North America and elsewhere as well. However, these...

"Most analyses of the macroeconomic adjustment required to correct global imbalances ignore net exports of new varieties of goods and services and do not account for firms' entry in the product market. In this paper we revisit the macroeconomics of trade adjustment in the context of the classic...