Quarterly Journal of Economics Vol. 131 No. 3 2016
Measuring the Unequal Gains from Trade *
Abstract
Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and parameters estimated from a nonhomothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors.
- DOI
- 10.1093/qje/qjw013
- Volume
- 131
- Issue
- 3
- Pages
- 1113-1180
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref