This paper explores the quantitative plausibility of three candidate explanations for the European productivity slowdown with respect to the US. The empirical plausibility of the common wisdom on the topic (the IT usageʺ hypothesis) is found to crucially depend on how IT-using industries are...

We discuss how standard computable equilibrium models of trade policy can be enriched with selection effects without missing other important channels of adjustment. This is achieved by estimating and simulating a partial equilibrium model that accounts for a number of real world effects of trade...