What Goods Do Countries Trade? New Ricardian Predictions / Arnaud Costinot, Ivana Komunjer.

Format:

Book

Author/Creator:

Costinot, Arnaud.

Contributor:

National Bureau of Economic Research.

Komunjer, Ivana.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13691.

NBER working paper series no. w13691

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

Though one of the pillars of the theory of international trade, the extreme predictions of the Ricardian model have made it unsuitable for empirical purposes. A seminal contribution of Eaton and Kortum (2002) is to demonstrate that random productivity shocks are sufficient to make the Ricardian model empirically relevant. While successful at explaining trade volumes, their model remains silent with regards to one important question: What goods do countries trade? Our main contribution is to generalize their approach and provide an empirically meaningful answer to this question.

Notes:

Print version record

December 2007.