Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - In: International Economic Review 55 (2014) 11, pp. 1305-1348
We develop a general equilibrium monopolistic competition model in which wages, productivity, consumption diversity, and markups respond to trade integration. We structurally estimate the model and simulate the impacts of removing all trade barriers generated by the Canada–U.S. border. Firm...