Year: 2007
Type: report
Abstract: Though one of the pillars of the theory of international trade, the extreme predictions of the Ricardian model have made it unsuitable for empirical purposes.A seminal contribution of Eaton and Kortum (2002) is to demonstrate that random productivity shocks are sufficient to make the Ricardian model empirically relevant.While successful at explaining trade volumes, their model remains silent with regards to one important question: What goods do countries trade?Our main contribution is to generalize their approach and provide an empirically meaningful answer to this question.
DOI: 10.3386/w13691
Authors: Arnaud Costinot, Ivana Komunjer
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1879255382