Creat membership Creat membership
Sign in

Forgot password?

Confirm
  • Forgot password?
    Sign Up
  • Confirm
    Sign In
home > search

Now showing items 1 - 15 of 15

  • The Elusive Pro-Competitive Effects of Trade

    Arkolakis, Costas   Costinot, Arnaud   Donaldson, Dave   Rodriguez-Clare, Andrs  

    We study the gains from trade liberalization in models with monopolistic competition, firm-level heterogeneity, and variable markups. For a large class of demand functions used in the international macro and trade literature, we derive a parsimonious generalization of the welfare formula in Arkolakis et al. (2012). We then use both estimates from micro-level trade data and evidence regarding firm-level pass-through to quantify the implications of this new formula. Within the class of models that we consider, our main finding is that gains from trade liberalization predicted by models with variable markups are equal to, at best, and slightly lower than, at worst, those predicted by models with constant markups. In this sense, pro-competitive effects of trade are elusive.
    Download Collect
  • Comparative advantage and agricultural trade

    Donaldson, Dave  

    This article is based on a transcript of the Leonard K. Elmhirst Memorial Address, delivered at the 30th International Conference of Agricultural Economists in Vancouver, Canada, on July 29, 2018. The presentation provided an overview of work that I have done recently on comparative advantage and its role in agricultural trade patterns and trade-driven changes in welfare. Two topics are addressed: (a) the static gains from intranational agricultural trade due to comparative advantage; and (b) how trade might mitigate consumption losses and food insecurity from changes in agricultural productivity caused by drought and climate change.
    Download Collect
  • Railroads of the Raj:Estimating the Impact of Transportation Infrastructure

    Donaldson, Dave  

    How large are the benefits of transportation infrastructure projects, and what explains these benefits? This paper uses archival data from colonial India to investigate the impact of India's vast railroad network. Guided by four results from a general equilibrium trade model, I find that railroads: (1) decreased trade costs and interregional price gaps; (2) increased interregional and international trade; (3) increased real income levels; and (4) that a sufficient statistic for the effect of railroads on welfare in the model accounts well for the observed reduced-form impact of railroads on real income in the data.
    Download Collect
  • The View from Above: Applications of Satellite Data in Economics

    Donaldson, Dave   Storeygard, Adam  

    Download Collect
  • Railroads and American Economic Growth: A “Market Access” Approach*

    Donaldson, Dave   Hornbeck, Richard  

    Download Collect
  • The Gains from Market Integration

    Donaldson, Dave  

    How large are the gains from product market integration-or, equivalently, from a reduction in barriers to trade over space? This article surveys recent work on this question in the context of both international and intranational trade.
    Download Collect
  • What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas

    Costinot, Arnaud   Donaldson, Dave   Komunjer, Ivana  

    The Ricardian model predicts that countries should produce and export relatively more in industries in which they are relatively more productive. Though one of the most celebrated insights in the theory of international trade, this prediction has received little attention in the empirical literature since the mid-1960s. The main reason behind this lack of popularity is the absence of clear theoretical foundations to guide the empirical analysis. Building on the seminal work of Eaton and Kortum ("Technology, Geography, and Trade", Econometrica, 70, 1741-1779 2002), we offer such foundations and use them to quantify the importance of Ricardian comparative advantage. In the process, we also provide a theoretically consistent alternative to Balassa's (1965, "An Empirical Demonstration of Classical Comparative Cost Theory", Review of Economics and Statistics, 45, 231-238) well-known index of "revealed comparative advantage".
    Download Collect
  • Nonparametric Counterfactual Predictions in Neoclassical Models of International Trade

    Adao, Rodrigo   Costinot, Arnaud   Donaldson, Dave  

    We develop a methodology to construct nonparametric counterfactual predictions, free of functional form restrictions on preferences and technology, in neoclassical models of international trade. First, we establish the equivalence between such models and reduced exchange models in which countries directly exchange factor services. This equivalence implies that, for an arbitrary change in trade costs, counterfactual changes in the factor content of trade, factor prices, and welfare only depend on the shape of a reduced factor demand system. Second, we provide sufficient conditions under which estimates of this system can be recovered nonparametrically. Together, these results offer a strict generalization of the parametric approach used in-so-called gravity models. Finally, we use China's recent integration into the world economy to illustrate the feasibility and potential benefits of our approach.
    Download Collect
  • THE MORE WE DIE,THE MORE WE SELL? A SIMPLE TEST OF THE HOME-MARKET EFFECT

    Costinot, Arnaud   Donaldson, Dave   Kyle, Margaret   Williams, Heidi  

    The home-market effect, first hypothesized by Linder (1961) and later formalized by Krugman (1980), is the idea that countries with larger demand for some products at home tend to have larger sales of the same products abroad. In this article, we develop a simple test of the home-market effect using detailed drug sales data from the global pharmaceutical industry. The core of our empirical strategy is the observation that a country's exogenous demographic composition can be used as a predictor of the diseases that its inhabitants are most likely to die from and, in turn, the drugs they are most likely to demand. We find that the correlation between predicted home demand and sales abroad is positive and greater than the correlation between predicted home demand and purchases from abroad. In short, countries tend to be net sellers of the drugs they demand the most, as predicted by Linder (1961) and Krugman (1980).
    Download Collect
  • The More We Die, the More We Sell? A Simple Test of the Home-Market Effect*

    Costinot, Arnaud   Donaldson, Dave   Kyle, Margaret   Williams, Heidi  

    Download Collect
  • Once a physicist: Dave Donaldson

    Download Collect
  • Once a physicist: Dave Donaldson

    Download Collect
  • Dave Donaldson: Winner of the 2017 Clark Medal

    Acemoglu, Daron  

    Download Collect
  • Dave Donaldson: Winner of the 2017 Clark Medal

    Acemoglu   Daron  

    Download Collect
  • Evolving Comparative Advantage and the Impact of Climate Change in Agricultural Markets:Evidence from 1.7 Million Fields around the World

    Costinot, Arnaud   Donaldson, Dave   Smith, Cory  

    A large agronomic literature models the implications of climate change for a variety of crops and locations around the world. The goal of the present paper is to quantify the macro-level consequences of these micro-level shocks. Using an extremely rich micro-level data set that contains information about the productivity-both before and after climate change-of each of 10 crops for each of 1.7 million fields covering the surface of the earth, we find that the impact of climate change on these agricultural markets would amount to a 0.26 percent reduction in global GDP when trade and production patterns are allowed to adjust. Since the value of output in our 10 crops is equal to 1.8 percent of world GDP, this corresponds to about one-sixth of total crop value.
    Download Collect
1

Contact

If you have any feedback, Please follow the official account to submit feedback.

Turn on your phone and scan

Submit Feedback