publication . Preprint . Research . Article . 2012

Variety Gains and the Extensive Margin of Trade

Lukas Mohler;
Open Access
  • Published: 01 Jan 2012
  • Country: Switzerland
Abstract
Findings from the literature suggest that previous estimates of the variety gains from trade are too small because of the imprecise measurement of the imported variety set under the Armington assumption. In this contribution, the lambda ratios as presented in Feenstra (1994) are first modified by assuming that all import variations are due to extensive margin adjustments. Under this extreme assumption, variety gains increase by a factor of six compared with the baseline Armington product-country variety differentiation case. Second, results from the literature on multi-product firms are used to obtain a more realistic magnitude of the extensive margin of imports...
Subjects
free text keywords: Margins of trade, welfare gains from trade, multi-product firm, F10, F12, F14, Margins of trade, welfare gains from trade, multi-product firm, Außenhandelsgewinn, Außenhandelsstruktur, Wohlfahrtsanalyse, USA, jel:F10, jel:F12, jel:F14, ddc:330, General Economics, Econometrics and Finance, Macroeconomics, International economics, Econometrics, Economics, Gains from trade, Welfare, media_common.quotation_subject, media_common
Related Organizations
Funded by
SNSF| Applications of nonliner spectroscopy to the study of ultrafast photoinduced processes
Project
  • Funder: Swiss National Science Foundation (SNSF)
  • Project Code: 200020-100014
  • Funding stream: Project funding | Project funding (Div. I-III)
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