This chapter reviews a recent body of theoretical and empirical work that studies the
normative and positive aspects of trade policy. We start by presenting reduced-form …

Between 1940 and 1980 the wage gap between poorer US cities and richer ones was
shrinking at an annual rate of roughly 1.4%. After 1980, however, there was no further …

This paper provides evidence on the consumption effects of trade shocks by exploiting
changes in US and Chinese trade policy between 2017 and 2018. The analysis uses a …

How do international trade shocks affect spatially connected regional markets? We answer
this question by extending shift-share empirical specifications to incorporate general …

This paper measures the output costs of sovereign risk by combining a sovereign debt
model with firm-and bank-level data. An increase in sovereign risk lowers the price of …

How are the gains and losses from trade distributed across households? We document that
tradable goods and services constitute a larger fraction of expenditures for low-wealth and …

What are the welfare implications of trade shocks? We provide a sufficient statistic that
measures changes in welfare, to a first-order approximation, taking into account adjustment …

Should a nation's tax system become more progressive as it opens to trade? Does opening
to trade change the benefits of a progressive tax system? We answer these question within a …

We argue that incomplete markets and income risk explain a large fraction of moving rates,
especially for low-wealth individuals. We reach this conclusion by developing a quantitative …

Economic growth has varied tremendously across regions of the United States over the past
several decades. In this paper, I develop a dynamic quantitative spatial model to study the …