all the above facts, but only if one is willing to assume a high labor supply elasticity (2 percent) and a high markup (40 …

that the terms of trade developing countries are essentially the relative prices of commodity exports and manufactured … explosion of oil prices in the early 1970s. The terms of trade industrial countries worsened considerably, while the terms of …

goods prices. We describe an extended version of this model with variable elasticity of demand of the differentiated goods …