Decomposing the welfare gains from trade

Paolo Bertoletti () and Federico Etro ()

Economics Letters, 2025, vol. 247, issue C

Abstract: The textbook of International Economics by Krugman, Obstfeld and Melitz (2022) introduces the gains from trade under monopolistic competition with a simple linear demand model. We use its representative consumer foundation to decompose the welfare gains from a market expansion into competitive effects, variety effects and selection effects

Keywords: Gains from trade; Monopolistic competition; Heterogeneous firms (search for similar items in EconPapers)
JEL-codes: D11 D43 F12 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176525000266
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Decomposing the Welfare Gains from Trade (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176525000266

DOI: 10.1016/j.econlet.2025.112189

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().