Globalization, Markups, and US Welfare

• 成果类型: Article
• 署名作者: Feenstra, Robert C.; Weinstein, David E.
• 署名单位: University of California System; University of California Davis; National Bureau of Economic Research; Columbia University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/692695
• 发表日期: 2017
• 页码: 1040-1074
• 关键词: SINGLE MARKET PROGRAM; trade liberalization; MANUFACTURING-INDUSTRIES; INTERNATIONAL-TRADE; monopolistic competition; product differentiation; multiproduct firms; increasing returns; EFFICIENCY; discipline

摘要

This paper estimates the impact of globalization on markups, and the effect of changing markups on US welfare, in a monopolistic competition model. We work with symmetric translog preferences, which allow for endogenous markups and firm entry and exit, thereby changing product variety. We find that between 1992 and 2005, US import shares rose and US firms exited, leading to an implied fall in markups, while variety went up because of imports. US welfare rose by nearly 1 percent as a result of these changes, with product variety contributing one-half of that total and declining markups the other half.