The Elusive Pro-Competitive Effects of Trade.
We study the gains from trade liberalization in models with monopolistic competition, firm-level heterogeneity, and variable markups. For a large class of demand functions used in the international macro and trade literature, we derive a parsimonious generalization of the welfare formula in Arkolaki...
| Publicado en: | Review of Economic Studies Vol. 86; no. 1; pp. 46 - 81 |
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| Autores principales: | , , , |
| Formato: | Artículo |
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Oxford University Press / USA
Jan2019
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=133750670&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 133750670 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Jan2019 vid: 86 iid: 1 pid: 622 pub: Oxford University Press / USA artinfo: ui: 133750670 10.1093/restud/rdx075 ppf: 46 ppct: 35 formats: tig: atl: The Elusive Pro-Competitive Effects of Trade. aug: au: Arkolakis, Costas Costinot, Arnaud Donaldson, Dave Rodríguez-Clare, Andrés affil: Yale and NBER MIT and NBER UC Berkeley and NBER su: International trade Economic competition Monopoly capitalism Microeconomics Gravity model (Social sciences) Free trade Pass through entities sug: subj: International trade Economic competition Monopoly capitalism Microeconomics Gravity model (Social sciences) International Trade Financing Free trade Pass through entities keyword: Gravity models Monopolistic competition Pro-competitive effect Variable markups Gravity models Monopolistic competition Pro-competitive effect Variable markups ab: We study the gains from trade liberalization in models with monopolistic competition, firm-level heterogeneity, and variable markups. For a large class of demand functions used in the international macro and trade literature, we derive a parsimonious generalization of the welfare formula in Arkolakis et al. (2012). We then use both estimates from micro-level trade data and evidence regarding firm-level pass-through to quantify the implications of this new formula. Within the class of models that we consider, our main finding is that gains from trade liberalization predicted by models with variable markups are equal to, at best, and slightly lower than, at worst, those predicted by models with constant markups. In this sense, pro-competitive effects of trade are elusive. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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