Measuring the Unequal Gains from Trade
Abstract
Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and parameters estimated from a non-homothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors.
Download PDF
Citation
Fajgelbaum, Pablo, and Amit Khandelwal. "Measuring the Unequal Gains from Trade." Quarterly Journal of Economics 131 (March 2016): 1113-1180.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.