Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

We study international trade in a model where consumers have non-homothetic preferences and where household income …) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The threat of parallel … trade allows differences in per capita incomes to have a strong impact on the extensive margin of trade, whereas differences …

We study international trade in a model where consumers have non-homothetic preferences and where household income …) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The threat of parallel … trade allows differences in per capita incomes to have a strong impact on the extensive margin of trade, whereas differences …

What has been the overall global welfare impact of the accession to the World Trade Organization of a large country … simple user-friendly formula to calculate the global welfare impact of the simultaneous trade liberalization of a number of … countries? How sensitive is the answer to the assumption of the trade model? We find a striking answer to these questions. We …

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize their gains from trade equation. Our formula permits easy …

In this paper, we develop a network perspective on the welfare gains from trade in today’s internationally fragmented … supply chains. Towards this end, we study a Ricardian trade model featuring trade in final and intermediate products, and … introduce a novel comparative statics approach to decompose the total welfare effects of an arbitrary trade cost shock into …

This paper identifies a new source of gains from trade from asset heterogeneity among firms. Under financial frictions …, trade openness or liberalization will always force the least wealthy firms to close; induce the rationalization effect which … frictions or the greater the asset inequality among firms, the larger the gains from trade from this new source. We also show …

This article considers a model of international trade in which the number of produced commodities does not exceed the … number of countries engaged in trade. Technology is modeled such that each commodity can be produced in each country from a … than how it would with a zero rate of profits. Trade may leave consumers in a country worse off, as compared with autarky …

Estimates of the trade elasticity based on actual trade policy changes are scarce, and the few that exist are all over … the place. This paper offers a setting where an exogenous increase in a border tax can be used to estimate the trade … elasticity. It shows theoretically and empirically that if evasion of border taxes is not taken into account, the trade …