Replication data for: International Trade with Indirect Additivity

Principal Investigator(s):  View help for Principal Investigator(s) Paolo Bertoletti; Federico Etro; Ina Simonovska

Version:  View help for Version V1

Name File Type Size Last Modified
  data_code_international_trade_with_indirect_additivity 10/26/2021 08:48:AM
LICENSE.txt text/plain 14.6 KB 10/12/2019 07:05:PM

Project Citation: 

Bertoletti, Paolo, Etro, Federico, and Simonovska, Ina. Replication data for: International Trade with Indirect Additivity. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114364V1

Project Description

Summary:  View help for Summary We develop a general equilibrium model of trade that features "indirectly additive" preferences and heterogeneous firms. Monopolistic competition generates markups that are increasing in firm productivity and in destination country per capita income, but independent from destination population, as documented empirically. The gains from trade liberalization are lower than in models based on CES preferences, and the difference is governed by the average pass-through. When we calibrate the model so as to match observed pricing-to-market in micro-data, it generates welfare gains that are substantially lower than those predicted by commonly employed frameworks.

Scope of Project

Subject Terms:  View help for Subject Terms Aggregate international trade and macroeconomic data
JEL Classification:  View help for JEL Classification
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
      F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
      L13 Oligopoly and Other Imperfect Markets
Geographic Coverage:  View help for Geographic Coverage World
Time Period(s):  View help for Time Period(s) 2004 – 2004
Universe:  View help for Universe Manufacturing establishments in 123 countries
Data Type(s):  View help for Data Type(s) aggregate data

Methodology

Data Source:  View help for Data Source World Development Indicators, Penn World Tables 8.0, CEPII, UNIDO, UN Comtrade
Unit(s) of Observation:  View help for Unit(s) of Observation Country and year,

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Published Versions

V1 [2019-10-12]

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