Barriers to international trade are known to be large but due to data limitations it is hard to measure them directly for a large number of countries over many years. To address this problem I derive a micro-founded measure of bilateral trade costs that indirectly infers trade frictions from...

This paper quantitatively explores the role of the demand structure in explaining the relationship between an importer's per capita income and the extensive margin of bilateral trade. The underlying mechanism is based on the fact that agents expand the set of goods they consume with income. This...

It is well known that the analysis of efficient specialization in Ricardian production with many countries and many commodities cannot be broken down to the simple case of two countries and two commodities. By drawing on some recent results of convex geometry and the theory of cephoids, this...