Goods Trade, Factor Mobility and Welfare

Stephen Redding

No 18008, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a quantitative spatial model that incorporates a rich geography of trade and imperfect labor mobility between locations. We provide general results for the existence, uniqueness and comparative statics of the equilibrium. We show how the model can be used to undertake counterfactuals using only data in an initial equilibrium. In these counterfactuals, the welfare gains from trade depend on changes in both domestic trade shares and reallocations of population across locations. We show that factor mobility introduces quantitatively relevant differences in the counterfactual predictions of constant and increasing returns to scale models.

JEL-codes: F11 F12 F16 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-int
Note: ITI
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Citations: View citations in EconPapers (53)

Published as Stephen J. Redding, 2016. "Goods trade, factor mobility and welfare," Journal of International Economics, vol 101, pages 148-167.

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Related works:
Journal Article: Goods trade, factor mobility and welfare (2016)
Working Paper: Goods Trade, Factor Mobility and Welfare (2012)
Working Paper: Goods trade, factor mobility and welfare (2012)
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