American Economic Review Vol. 102 No. 1 2012

New Trade Models, Same Old Gains?

Costas Arkolakis¹; Arnaud Costinot²; Andrés Rodríguez-Clare³

¹ Yale University and NBER, Department of Economics, Yale University, 28 Hillhouse Ave, New Haven, CT. · ² MIT and NBER, Department of Economics, MIT, 50 Memorial Drive Building E52, Room 243B, Cambridge, MA. · ³ University of California, Berkeley, and NBER, Department of Economics, 508-1 Evans Hall 3880, Berkeley, CA 94720-3880.

Abstract

Micro-level data have had a profound influence on research in international trade over the last ten years. In many regards, this research agenda has been very successful. New stylized facts have been uncovered and new trade models have been developed to explain these facts. In this paper we investigate to what extent answers to new micro-level questions have affected answers to an old and central question in the field: how large are the welfare gains from trade? A crude summary of our results is: “So far, not much.”

DOI

10.1257/aer.102.1.94

Volume

102

Issue

1

Pages

94-130

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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