Endogenous Vertical Differentiation, Variety, and the Unequal Gains from Trade
Bibliographic Data
| ID | 19320193 |
|---|---|
| Authors | Gunnar Heins (0009-0004-3791-687X, University of Florida, corresponding author) |
| Year | 2023 |
| Volume | 105 |
| Issue | 4 |
| Pages | 910-930 |
| Publication date | 2023-07-11 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press (PUBLISHER • US) |
| DOI | 10.1162/rest_a_01112 |
| OpenAlex | W3208932032 |
| Language | EN |
| Citations received | 2 |
| References cited | 31 |
How unequal are the gains from trade? This paper develops a structural framework to quantify the consequences of international trade on welfare of consumers across the income distribution, allowing for nonhomothetic demand and endogenous quality choices by firms. Using random coefficients demand estimation techniques, I infer demand and supply parameters, as well as household-specific price indexes for more than 3,000 distinct industries and find the gains from trade to be moderately unequal except in wealthier and small economies. Further, not accounting for endogenous vertical differentiation would overstate the impact of trade on cost-of-living inequality by close to 50
Distribution (mathematics) · Econometrics · Economics · Endogenous growth theory · Estimation · Gains from trade · Human capital · Inequality · Market economy · Microeconomics · Product differentiation · Variety (cybernetics) · Welfare · Economic theories and models · Economics of Agriculture and Food Markets · Global trade and economics
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Product quality and the direction of trade
Across-Product Versus Within-Product Specialization in International Trade
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Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector
Globalization and the Gains From Variety
The Variety and Quality of a Nation's Exports
Automobile Prices in Market Equilibrium
The Long and Short (of) Quality Ladders
Distorted Gravity
The Next Generation of the Penn World Table
Import Competition and Quality Upgrading
The Tip of the Iceberg
Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
Shipping the Good Apples Out? An Empirical Confirmation of the Alchian‐Allen Conjecture
Income Distribution, Product Quality, and International Trade
Quantifying the Benefits of New Products
Estimating the Innovator’s Dilemma
| Citations per year | 1 |
|---|---|
| Citation span | 2024 - 2025 (2) |
| Highly cited | No |