Dix-Carneiro, Rafael; Pessoa, Joao Paulo; … - 2021
implications for the gains from trade, and we revisit the “China Shock” through the lens of our model. We show that the U.S. enjoys …We study the role of global trade imbalances in shaping the adjustment dynamics in response to trade shocks. We build …-saving decisions in each country commanded by representative households, leading to endogenous trade imbalances, and 2) labor market …