Article ID Journal Published Year Pages File Type
967170 Journal of Monetary Economics 2012 18 Pages PDF
Abstract
► We analyze individual gains from trade in a GE model of monopolistic competition. ► The model features income heterogeneity between and within countries. ► Trade lowers markups but may reduce varieties consumed in the higher income country. ► Richer consumers in the higher income country may lose from trade. ► Theoretical results are illustrated for the historical sequence of U.S. FTAs.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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