Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican microdata with a quantitative spatial equilibrium model and a new empirical strategy to study the long-term economic consequences of tourism both locally and in the aggregate. We...

A growing literature has documented the role of rm heterogeneity within sectors in accounting for nominal income inequality. This paper explores the implications for household price indices across the income distribution. Using detailed matched US home and store scanner microdata, we present...

Measuring changes in welfare, and particularly the price index, is challenging in the absence of well-measured prices covering the entire consumption basket. We propose and implement a new approach to estimate changes in income-group specific price indices and welfare using rich, but widely...