Brooks, Wyatt J.; Pujolàs, Pau S. - Department of Economics, McMaster University - 2014
We extend the results of Arkolakis, Costinot and Rodriguez-Clare (2012) to environments with non-homotheticities and show how to measure the welfare gains from trade in a broad class of static, non-CES trade models. In these models, the elasticity of import intensity with respect to trade costs...