The US Gains from Trade: Valuation Using the Demand for Foreign Factor Services

Arnaud Costinot and Andres Rodriguez-Clare

Journal of Economic Perspectives, 2018, vol. 32, issue 2, 3-24

Abstract: About eight cents out of every dollar spent in the United States is spent on imports. What if, because of a wall or some other extreme policy intervention, imports were to remain on the other side of the US border? How much would US consumers be willing to pay to prevent this hypothetical policy change from taking place? The answer to this question represents the welfare cost from autarky or, equivalently, the welfare gains from trade. In this article, we discuss how to evaluate these gains using estimates of the demand for foreign factor services.

JEL-codes: F11 F13 F14 F43 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/jep.32.2.3
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Citations: View citations in EconPapers (31)

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Working Paper: The US Gains From Trade: Valuation Using the Demand for Foreign Factor Services (2018)
Working Paper: The US Gains from Trade: Valuation Using the Demand for Foreign Factor Services (2018)
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