Petropoulou, Dimitra; Soo, Kwok Tong - Federal Reserve Bank of Dallas - 2011
. This paper develops a small country, overlapping generations model of international trade in which goods durability gives … international trade, provided the nontraded sector is sufficiently capital intensive. The elasticity of trade flows to GDP is found … endogenous shift in preferences and international trade flows. It also explains the observation that deeper downturns are …