000			02794cam a22003617 4500
001			w13933
003			NBER
005			20211020111809.0
006			m o d
007			cr cnu||||||||
008			210910s2008 mau fo 000 0 eng d
100	1		_aArkolakis, Costas. _930340
245	1	0	_aEndogenous Variety and the Gains from Trade / _cCostas Arkolakis, Svetlana Demidova, Peter J. Klenow, Andrés Rodríguez-Clare.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2008.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w13933
500			_aApril 2008.
520	3		_aWe explore the implications of models with increasing returns, endogenous variety and firm-level heterogeneity for the quantification of the gains from trade. We first focus on the impact of trade liberalization on imported variety by analyzing the experience of Costa Rica from 1986 to 1992. We find that although liberalization triggered a sizable increase in variety, the resulting welfare gains were small because of strong heterogeneity across imported goods. Upon trade liberalization, the new varieties are imported in small quantities, and hence contribute little to welfare. We then present a model with firm-level increasing returns, differentiated goods, monopolistic competition, endogenous variety and free entry to show that total variety (domestic plus imported) can either increase, decrease or remain constant with trade liberalization. More importantly, the gains from trade do not depend on what happens to total variety. In fact, we find that, conditional on the estimated elasticities of trade with respect to trade costs, models with increasing returns, endogenous variety, free or restricted entry, and firm-level heterogeneity have exactly the same implications for welfare gains from trade liberalization as traditional models.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF10 - General _2Journal of Economic Literature class.
690		7	_aF12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation _2Journal of Economic Literature class.
700	1		_aDemidova, Svetlana. _928544
700	1		_aKlenow, Peter J. _914361
700	1		_aRodríguez-Clare, Andrés.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w13933.
856	4	0	_uhttps://www.nber.org/papers/w13933
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w13933
942			_2ddc _cW-PAPER
999			_c334154 _d292716