Abstract
Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and parameters estimated from a nonhomothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors.
Original language | English (US) |
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Pages (from-to) | 1113-1180 |
Number of pages | 68 |
Journal | Quarterly Journal of Economics |
Volume | 131 |
Issue number | 3 |
DOIs | |
State | Published - Aug 1 2016 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics