Slicing the Pie: Quantifying the Aggregate and Distributional Effects of Trade
Recent quantitative models of international trade based upon microeconomic foundations generally find positive aggregate welfare gains from trade-policy liberalizations. However, recent empirical work documents substantial variation in gains and losses across local labor markets in the United States from such shocks. This lecture addresses new methods to quantify the net gains from trade for any country, distinguishing inequality-adjusted welfare changes from inequality-unadjusted welfare changes. The model is used to estimate these different effects for the United States for the case of China's entrance to the world trade organization (the "China shock") and for the (theoretical) case of a movement to complete autarky.
Andrés Rodríguez-Clare
Andrés Rodríguez-Clare is the Edward G. and Nancy S. Jordan Professor of Economics at the University of California, Berkeley. His research interests include gains from trade, economic growth, multinational production, technology diffusion, and industrial policy...
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