We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize the analysis of Arkolakis, Costinot and...

In a free-entry Cournot oligopoly model with a quadratic utility function that yields differentiated products, it is shown that there are losses from trade when the trade cost is close to the prohibitive level. Although the total number of varieties increases, there is a reduction in consumer...

In this paper, I investigate welfare gains associated with trade induced intra-firm adjustments of multi-product firms. To disentangle the welfare gains, I split up the R&D portfolio of a multi-product firm into three different channels: i) product innovation, ii) investments in the degree of...

We examine the gains from Chinese accession to the WTO. Using Arkolakis, Costinot, and Rodríguez-Clare (2012) we provide a new quantitative welfare measure by dividing the manufacturing sector into import and export sub-sectors. We then evaluate how the increased openness caused by China's...

Chapter 1: Introduction -- Chapter 2: An Agricultural Household Model with Tariffs -- Chapter 3: Data and Estimation -- Chapter 4: Income Gains and Inequality Costs -- Chapter 5: The Trade-Off -- Chapter 6: Alternative Models -- Chapter 7: HIT: Household Impacts of Trade -- Chapter 8:...