Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967170 | Journal of Monetary Economics | 2012 | 18 Pages |
Abstract
⺠We analyze individual gains from trade in a GE model of monopolistic competition. ⺠The model features income heterogeneity between and within countries. ⺠Trade lowers markups but may reduce varieties consumed in the higher income country. ⺠Richer consumers in the higher income country may lose from trade. ⺠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
Kristian Behrens, Yasusada Murata,