Goods trade, factor mobility and welfare

• 成果类型: Article
• 署名作者: Redding, Stephen J.
• 署名单位: Princeton University; National Bureau of Economic Research; Center for Economic & Policy Research (CEPR)
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.04.003
• 发表日期: 2016
• 页码: 148-167
• 关键词: International trade; factor mobility; Welfare gains from trade

摘要

We develop a quantitative spatial model that incorporates a rich geography of trade costs and labor mobility with heterogeneous worker preferences across locations. We provide comparative statics for the unique equilibrium with respect to the primitives of the model. We show how the model can be used to undertake counterfactuals using only data in an initial equilibrium. In these counterfactuals, the welfare gains from trade depend on changes in both domestic trade shares and reallocations of population across locations. We show that factor mobility introduces quantitatively relevant differences in the counterfactual predictions of constant and increasing returns to scale models. (C) 2016 Elsevier B.V. All rights reserved.