distributions - affects trade patterns along both the extensive and intensive margin. The idea that similarity of demand structures … intensifies trade goes back to the well-known Linder hypothesis. Based on a sample of 102 countries, I find that bilateral trade … range of incomes for which two distributions overlap - and document that both are important determinants of bilateral trade …

This chapter discusses whether and how 'new quantitative trade models' (NQTMs) can be fruitfully applied to quantify … the welfare effects of trade liberalization, thus shedding light on the trade-related effects of further European … integration. On the one hand, it argues that NQTMs have indeed the potential of being used to supplement traditional 'computable …