Measuring the Unequal Gains from Trade
Pablo Fajgelbaum () and
No 20331, NBER Working Papers from National Bureau of Economic Research, Inc
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)
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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)
Working Paper: Measuring the Unequal Gains From Trade (2013)
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