We present a unified dynamic framework to study the interconnections between international trade and business cycle models. We prove an aggregate equivalence between a competitive, representative firm model that has aggregate production externalities and dynamic trade models that feature...

In this paper we characterize the set of equilibria in a generalized version of the canonical two-region economic geography model that nests the class of models in Allen and Arkolakis (2014) as well as Krugman (1991). We show that the set of (regular) equilibria corresponds to the set of zeros...

We characterize the set of equilibria in a generalized version of the two-region economic geography model that nests the class of models in Allen and Arkolakis (2014) as well as Krugman (1991). We show that the set of (regular) equilibria corresponds to the set of zeros of a function V(x), where...