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Trade and welfare: Does industrial organization matter?

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  • Balistreri, Edward J.
  • Hillberry, Russell H.
  • Rutherford, Thomas F.

Abstract

Recent analysis across several trade theories suggests that, given appropriate calibration, trade and welfare are insensitive to the particular industrial organization. We show that industrial organization does matter, once we consider a second sector that competes for factor services.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 109 (2010)
Issue (Month): 2 (November)
Pages: 85-87

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Handle: RePEc:eee:ecolet:v:109:y:2010:i:2:p:85-87

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Variety effects Heterogeneous firms Gains from trade;

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References

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Citations

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Cited by:
  1. Costas Arkolakis & Arnaud Costinot & Andres Rodriguez-Clare, 2012. "New Trade Models, Same Old Gains?," American Economic Review, American Economic Association, vol. 102(1), pages 94-130, February.
  2. Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," CER-ETH Economics working paper series 08/89, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  3. Felbermayr, Gabriel & Jung, Benjamin & Larch, Mario, 2012. "Tariffs and welfare in new trade theory models," University of Tuebingen Working Papers in Economics and Finance 41, University of Tuebingen, Faculty of Economics and Social Sciences.
  4. Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2009. "Trade and Welfare: Does Industrial Organization Matter?," CER-ETH Economics working paper series 09/119, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  5. Balistreri, Edward J. & Rutherford, Thomas F., 2013. "Computing General Equilibrium Theories of Monopolistic Competition and Heterogeneous Firms," Handbook of Computable General Equilibrium Modeling, Elsevier.
  6. Eddy Bekkers & Robert Stehrer, 2011. "Reallocation gains in a specific factors model with firm heterogeneity," Economics working papers 2011-15, Department of Economics, Johannes Kepler University Linz, Austria.
  7. Jensen, Jesper & Tarr, David G., 2011. "Deep trade policy options for Armenia: The importance of trade facilitation, services and standards liberalization," Economics Discussion Papers 2011-33, Kiel Institute for the World Economy.
  8. Costinot, Arnaud & Rodriguez-Clare, Andres, 2013. "Trade Theory with Numbers: Quantifying the Consequences of Globalization," CEPR Discussion Papers 9398, C.E.P.R. Discussion Papers.
  9. Haichao Fan & Edwin L.-C. Lai & Han Steffan Qi, 2012. "Global Gains from Trade Liberalization," CESifo Working Paper Series 3775, CESifo Group Munich.
  10. Loris Rubini, 2010. "Innovation and the Elasticity of Trade Volumes to Tariff Reductions," 2010 Meeting Papers 570, Society for Economic Dynamics.

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