Implications of the Eaton-Kortum Model of International Trade

This paper develops a general equilibrium model of world trade, based on the technology proposed by Eaton and Kortum. We study the existence and uniqueness of equilibrium. We propose and test an algorithm for calculating equilibria. We test the ability of a calibrated version of the model to account for trade volumes, and use the theory to simulate the gains from hypothetical trade liberalizations.

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Year of publication:	2004
Authors:	Robert E. Lucas, Jr. ; Alvarez, Fernando
Institutions:	Society for Economic Dynamics - SED
Subject:	trade \| volume \| gains

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Series:	2004 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Society for Economic Dynamics 2004 Number 623
Classification:	F - International Economics ; E - Macroeconomics and Monetary Economics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004970354