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Heterogeneity and Trade

Arnaud Costinot

University of California at San Diego, Economics Working Paper Series from Department of Economics, UC San Diego

Abstract: Aggregate production functions are a standard feature of the trade theorist's toolbox. While this modeling device has generated some fundamental insights, it presents one obvious shortcoming: it necessarily ignores any effect that the distribution of factor endowments across agents may have on international trade flows. This paper develops a general fraemwork that can shed light on these effects and discusses several applications.

Keywords: Heterogeneity; international trade; log-supermodularity; single crossing property (search for similar items in EconPapers)
Date: 2007-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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