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New Trade Models, Same Old Gains?

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  • Costas Arkolakis
  • Arnaud Costinot
  • Andres Rodriguez-Clare

Abstract

Micro-level data have had a profound influence on research in international trade over the last ten years. In many regards, this research agenda has been very successful. New stylized facts have been uncovered and new trade models have been developed to explain these facts. In this paper we investigate to what extent answers to new micro-level questions have affected answers to an old and central question in the field: how large are the welfare gains from trade? A crude summary of our results is: "So far, not much." (JEL F11, F12)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.1.94
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 1 (February)
Pages: 94-130

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:1:p:94-130

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References

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  1. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How big are the gains from trade?
    by jdingel in Trade Diversion on 2012-05-29 01:55:29
  2. How big are the gains from trade?
    by jdingel in Trade Diversion on 2012-05-29 01:55:29
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