Jung, Benjamin; Felbermayr, Gabriel; Larch, Mario - Verein für Socialpolitik - VfS - 2013
We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall …. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize …. We show analytically that an analysis based on iceberg costs necessarily underestimates the welfare gains from trade …