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Imports and Welfare: Variety Losses of the Argentine Crisis of 2001-2002

Author

Listed:
  • Irene Brambilla y Romina Tomé

    (Universidad Nacional de La Plata - CONICET)

  • Irene Brambilla y Romina Tomé

    (Inter-American Development Bank (IADB))

Abstract

The access to a large variety of products is one of the main sources of gains from international trade and globalization. When an economy goes through a crisis, aggregate demand shrinks resulting in fewer product varieties being imported. In this paper we quantify short-run and medium-run welfare losses that resulted from the reduction in the number of imported product varieties during the Argentine crisis of 2001-2002. We find that short-run welfare losses vary widely across products and that medium-run recovery depends on the ability to substitute towards new varieties.

Suggested Citation

  • Irene Brambilla y Romina Tomé & Irene Brambilla y Romina Tomé, 2014. "Imports and Welfare: Variety Losses of the Argentine Crisis of 2001-2002," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 60, pages 45-75, January-D.
    • Handle: RePEc:akh:journl:592
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    File URL: https://revistas.unlp.edu.ar/Economica/article/view/5348/4378
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    More about this item

    Keywords

    Gains from trade; Product varieties; Argentine crisis;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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