Replication data for: Price, Quality, and Variety: Measuring the Gains from Trade in Differentiated Products

Principal Investigator(s): View help for Principal Investigator(s) Gloria Sheu

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Project Citation:

Sheu, Gloria. Replication data for: Price, Quality, and Variety: Measuring the Gains from Trade in Differentiated Products. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113910V1

Project Description

Summary: This paper explores the gains from trade in differentiated products from three channels: decreases in price, improvements in quality, and increases in variety. Using data on Indian imports of computer printers from 1996 to 2005, a period of trade liberalization, I find that quality was the leading source of welfare gains. Consumers would require a 65 percent decrease in all 1996 prices to be as well off as they were with the quality available in 2005. The contribution of price was slightly smaller, while variety lagged farther behind. These effects varied across buyers, as gains were largest for small businesses.

Scope of Project

JEL Classification:
      F13 Trade Policy; International Trade Organizations
      F14 Empirical Studies of Trade
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L63 Microelectronics; Computers; Communications Equipment
      O19 International Linkages to Development; Role of International Organizations

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Published Versions

V1 [2019-10-12]

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