A large and growing share of world trade travels by air. We model exporters' choice between
fast, expensive air cargo and slow, cheap ocean cargo, which depends on the price …

Drawing on uncommonly rich and representative data from the Colombian manufacturing
census, this paper documents new empirical relationships between input prices, output …

The unit values of internationally traded goods are heavily influenced by quality. We model
this in an extended monopolistic competition framework where, in addition to choosing price …

We develop a framework for studying trade in horizontally and vertically differentiated
products. In our model, consumers with heterogeneous incomes and tastes purchase a …

The standard gravity model predicts that trade flows increase in proportion to importer and
exporter total income, regardless of how income is divided into income per capita and …

This paper examines the relationship between the destination of exports and the input prices
paid by firms, using detailed customs and firm-product-level data from Portugal. Both …

The Linder hypothesis has attracted substantial empirical research over decades. However,
the evidence has failed to provide consistent support for it. This paper explains the failure …

A major role for per-capita income in international trade, as opposed to simply country size,
was persuasively advanced by many early economists including Linder (1961), Kuznets …

This book offers a new perspective on the economics of globalization, based on the
concepts of firms' capabilities as the immediate cause of countries' wealth. It presents new …

Computable general equilibrium (CGE) models of international trade typically rely on
econometrically estimated trade elasticities as model inputs. These elasticities vary by as …