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Quarterly Journal of Economics Vol. 131 No. 3 2016

Measuring the Unequal Gains from Trade *

Pablo D. Fajgelbaum1; Amit Khandelwal2

1 University of California, Los Angeles · 2 ‡Columbia Business School, Uris Hall, 3022 Broadway, New York, NY 10027

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

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