market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general … and differentiation costs also have higher GDP, but supply a larger array of goods at improved terms of trade. The sign of … the international welfare spillovers depends on terms of trade, but also on consumers’ taste for variety. Higher domestic …

This paper analyzes the impact of terms of trade and risk-premium shocks on a small open economy in an intertemporal … improvement in the terms of trade, the Dutch disease effect (real exchange rate appreciation) goes away in the new steady state … the terms of trade coupled with a permanent reduction in the risk-premium leads to pro-industrialization and a real …

international trade in equity that encompasses complete and incomplete asset market scenarios. By separating asset prices and …

transitory output shocks on net current transfers and a significant positive and quantitatively large effect on the trade balance …

the U.S. and China are broadly supportive of the predictions of the model. …