We build into a Ricardian model sectoral linkages, trade in intermediate goods, and sectoral heterogeneity in … production to quantify the trade and welfare effects from tariff changes. We also propose a new method to estimate sectoral trade … elasticities consistent with any trade model that delivers a multiplicative gravity equation. We apply our model and use our …

We build into a Ricardian model sectoral linkages, trade in intermediate goods, and sectoral heterogeneity in … production to quantify the trade and welfare effects from tariff changes. We also propose a new method to estimate sectoral trade … elasticities consistent with any trade model that delivers a multiplicative gravity equation. We apply our model and use our …

to overall tariff reductions account for most of the observed changes in trade flows for NAFTA members. We decompose the … effects of NAFTA and find that 93% of Mexico’s, 58% of Canada’s and 55% of the United States’ trade effects can be attributed … to NAFTA’s tariff reductions. Trade in intermediate inputs and input-output linkages can amplify the welfare effects of …