We study international trade in a model where consumers have non-homothetic preferences and where household income …) countries but a threat of parallel trade restricts the scope of price discrimination between countries. The threat of parallel … trade allows differences in per capita incomes to have a strong impact on the extensive margin of trade, whereas differences …

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade … firms experience productivity gains from reducing input tariffs if trade intermediation of foreign inputs within their …

In a three-country model of endogenous trade agreements, we study the implications of the Most Favored Nation Clause … (MFN) when countries are free to form discriminatory preferential trade agreements (PTAs). While PTA members discriminate … reduces the potency of a country's optimal tariffs and therefore its incentive for unilaterally opting out of trade …

We extend structural gravity models of bilateral trade flows to oligopolistic competition. We show that conventional … gravity estimates do not only reflect trade costs but also market power. Our simple estimation procedure generalizes the … standard gravity model and disentangles exogenous trade frictions and endogenous market power distortions. We use our estimated …

. Owing to this linkage, trade cost reductions induce cartel members to adjust their sales, not only due to direct effects …, but also due to spillover effects related to cartel discipline. We apply these ideas to preferential trade agreements … (PTAs) and show that the indirect effects can give rise to trade diversion. We also characterize the welfare effects of …

How does import protection affect export performance? In trade models with scale economies, import liberalization can … export growth following the permanent normalization of trade relations with China (PNTR). But there was also an offsetting … quantitative trade model. Counterfactual analysis implies that while PNTR increased aggregate US exports relative to GDP, exports …

gains from trade accompanied by distributional conflicts, which have so far not been accounted for in the literature: a …