Measuring the unequal gains from trade

Pablo D. Fajgelbaum, Amit K. Khandelwal

Research output: Contribution to journalArticlepeer-review

131 Scopus citations


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 languageEnglish (US)
Pages (from-to)1113-1180
Number of pages68
JournalQuarterly Journal of Economics
Issue number3
StatePublished - Aug 1 2016

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


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