Bergoeing, Raphael; Kehoe, Timothy J. - ILADES, Facultad de Economía y Negocios
This paper quantitatively tests the "new trade theory" based on product di.erentiation, increasing returns, and imperfect competition. We employ a standard model, which allows both changes in the distribution of income among industrialized countries, emphasized by Helpman and Krugman (1985), and...