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Measuring the Unequal Gains from Trade

Pablo Fajgelbaum () and Amit Khandelwal

No 20331, NBER Working Papers from National Bureau of Economic Research, Inc

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 non-homothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors.

JEL-codes: D63 F10 F60 (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-int
Note: ITI
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Published as Fajgelbaum, Pablo D. and Amit K. Khandelwal (2016), "Measuring the Unequal Gains from Trade," The Quarterly Journal of Economics, 131 (3): 1113-1180.

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Journal Article: Measuring the Unequal Gains from Trade (2016) Downloads
Working Paper: Measuring the Unequal Gains From Trade (2013)
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