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General equilibrium analysis of the Eaton-Kortum model of international trade

Author: Fernando Alvarez; Robert E Lucas, Jr.; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2005.
Series: Working paper series (National Bureau of Economic Research), no. 11764.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"We study a variation of the Eaton-Kortum model, a competitive, constant-returns-to-scale multicountry Ricardian model of trade. We establish existence and uniqueness of an equilibrium with balanced trade where each country imposes an import tariff. We analyze the determinants of the cross-country distribution of trade volumes, such as size, tariffs and distance, and compare a calibrated version of the model with  Read more...
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Additional Physical Format: Print version:
Alvarez, Fernando, 1964-
General equilibrium analysis of the Eaton-Kortum model of international trade.
Cambridge, Mass. : National Bureau of Economic Research, ©2005
(OCoLC)62479999
Named Person: Jonathan Eaton; Samuel Kortum; Jonathan Eaton; Samuel Kortum
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Fernando Alvarez; Robert E Lucas, Jr.; National Bureau of Economic Research.
OCLC Number: 62275747
Notes: November 2005.
Cover title.
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (63, [11] pages) : color illustrations.
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Working paper series (National Bureau of Economic Research), no. 11764.
Responsibility: Fernando Alvarez, Robert E. Lucas, Jr.

Abstract:

"We study a variation of the Eaton-Kortum model, a competitive, constant-returns-to-scale multicountry Ricardian model of trade. We establish existence and uniqueness of an equilibrium with balanced trade where each country imposes an import tariff. We analyze the determinants of the cross-country distribution of trade volumes, such as size, tariffs and distance, and compare a calibrated version of the model with data for the largest 60 economies. We use the calibrated model to estimate the gains of a world-wide trade elimination of tariffs, using the theory to explain the magnitude of the gains as well as the differential effect arising from cross-country differences in pre-liberalization of tariffs levels and country size"--National Bureau of Economic Research web site.

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