Replication data for: International Trade with Indirect Additivity

Name: Replication data for: International Trade with Indirect Additivity
Published: 2018-05-01
License: This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.
Keywords: Aggregate international trade and macroeconomic data

Principal Investigator(s): View help for Principal Investigator(s) Paolo Bertoletti; Federico Etro; Ina Simonovska

Version: View help for Version V1

Name	File Type	Size	Last Modified
data_code_international_trade_with_indirect_additivity			10/26/2021 08:48:AM
LICENSE.txt	text/plain	14.6 KB	10/12/2019 07:05:PM

Project Citation:

Bertoletti, Paolo, Etro, Federico, and Simonovska, Ina. Replication data for: International Trade with Indirect Additivity. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114364V1

Project Description

Summary: We develop a general equilibrium model of trade that features "indirectly additive" preferences and heterogeneous firms. Monopolistic competition generates markups that are increasing in firm productivity and in destination country per capita income, but independent from destination population, as documented empirically. The gains from trade liberalization are lower than in models based on CES preferences, and the difference is governed by the average pass-through. When we calibrate the model so as to match observed pricing-to-market in micro-data, it generates welfare gains that are substantially lower than those predicted by commonly employed frameworks.

Scope of Project

Subject Terms: Aggregate international trade and macroeconomic data

JEL Classification:
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
      F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
      L13 Oligopoly and Other Imperfect Markets

Geographic Coverage: World

Time Period(s): 2004 – 2004

Universe: Manufacturing establishments in 123 countries

Data Type(s): aggregate data

Methodology

Data Source: World Development Indicators, Penn World Tables 8.0, CEPII, UNIDO, UN Comtrade

Unit(s) of Observation: Country and year,

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Published Versions

V1 [2019-10-12]

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DDI 2.5

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