Allocative efficiency, mark-ups, and the welfare gains from trade
نویسندگان
چکیده
منابع مشابه
Allocative Effi ciency, Mark-ups, and the Welfare Gains from Trade
This paper develops an index of allocative effi ciency that depends upon the distribution of mark-ups across goods and is separable from an index of standard Ricardian gains from trade. It determines how changes in trade frictions affect allocative efficiency in an oligopoly model of international trade, decomposing the effect into the cost-change channel and the price-change channel. Formulas ...
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How large are the welfare gains from trade when factors are misallocated due to domestic distortions? In this paper I provide a quantitative answer to this question by incorporating distortions to the allocation of labor across broad sectors into a model of structural change and Ricardian trade. Calibrating the model using 36 years of data for a diverse set of countries I find that (1) gains fr...
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I develop a multi-country multi-industry model of trade that features heterogeneous consumers with non-homothetic preferences. I use the model to quantify the measurement errors in the welfare gains estimates caused by the assumption of a representative consumer (ARC). First, I reduce the world level of all trade costs by 15% and find that ARC overestimates (underestimates) the gains of the poo...
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ژورنال
عنوان ژورنال: Journal of International Economics
سال: 2014
ISSN: 0022-1996
DOI: 10.1016/j.jinteco.2014.07.002