International Trade with Indirect Additivity

• 成果类型: Article
• 署名作者: Bertoletti, Paolo; Etro, Federico; Simonovska, Ina
• 署名单位: University of Pavia; Universita Ca Foscari Venezia; University of California System; University of California Davis
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20160382
• 发表日期: 2018
• 页码: 1-57
• 关键词: pricing-to-market; monopolistic competition; firm dynamics; markups; prices; QUALITY; variety; gains; GLOBALIZATION; PRODUCTIVITY

摘要

We develop a general equilibrium model of trade that features indirectly additive preferences and heterogeneous firms. Monopolistic competition generates markups that are increasing in firm productivity and in destination country per capita income, but independent from destination population, as documented empirically. The gains from trade liberalization are lower than in models hosed on CES preferences, and the difference is governed by the average pass-through. When we calibrate the model so as to match observed pricing-to-market in micro-data, it generates welfare gains that are substantially lower than those predicted by commonly employed frameworks.