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Trade and welfare: Does industrial organization matter?

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  • Balistreri, Edward J.
  • Hillberry, Russell H.
  • Rutherford, Thomas F.

Abstract

Recent analysis across several trade theories suggests that, given appropriate calibration, trade and welfare are insensitive to the particular industrial organization. We show that industrial organization does matter, once we consider a second sector that competes for factor services.

Suggested Citation

  • Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2010. "Trade and welfare: Does industrial organization matter?," Economics Letters, Elsevier, vol. 109(2), pages 85-87, November.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:2:p:85-87
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    More about this item

    Keywords

    Variety effects Heterogeneous firms Gains from trade;

    JEL classification:

    • F1 - International Economics - - Trade

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