GAINS FROM TRADE WITH VARIABLE TRADE ELASTICITIES

• 成果类型: Article
• 署名作者: Brooks, Wyatt J.; Pujolas, Pau S.
• 署名单位: University of Notre Dame; McMaster University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12399
• 发表日期: 2019
• 页码: 1619-1646
• 关键词: models; GLOBALIZATION; COMPETITION; markups

摘要

We measure gains from trade in multisector economies with nonhomothetic preferences where changes in trade costs generate reallocation of expenditure across sectors. We show how to measure the trade elasticity and how it relates to welfare. In this environment, the trade elasticity now varies both across countries and with levels of trade costs. In an application, we find that the trade elasticity varies substantially across countries and that the gains from moving from autarky to observed trade are on average between 24% and 28% greater than in a model where the trade elasticity is constant.