Caliendo, Lorenzo; Parro, Fernando - In: New developments in computable general equilibrium …, (pp. 41-60). 2010
This chapter applies the new heterogeneous firm CGE model of Caliendo and Parro (2009) to determine what the Ricardian gains are from changing partners for members of a trade bloc. We focus on the MERCOSUR case, using a model with 48 sectors and 5 countries. Motivated by recent policy...