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Linder (1961) conjectured that taste differences could impede trade flows. We extend Krugman (1980) to allow for producers that face taste heterogeneity with volatile demand. Consumers are characterized by different taste over product attributes and idiosyncratic risk. Firms face a portfolio...
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We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying … globalization …
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