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)|
|Number of pages||68|
|Journal||Quarterly Journal of Economics|
|State||Published - Aug 1 2016|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics