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Author: Alejandro Cuņat

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CEP discussion paper
A Many-Country Model of Industrialization

We draw attention to the role of economic geography in explaining important cross-sectional facts which are difficult to account for in existing models of industrialization. By construction, closed-economy models that st...Read more...

Holger Breinlich and Alejandro Cuñat

26 September 2011

CEP discussion paper
Trade Liberalization and Heterogeneous Firm Models: An Evaluation Using the Canada - US Free Trade Agreement

We examine the qualitative and quantitative predictions of a heterogeneous firm model à la Melitz (2003) in the context of the Canada - US Free Trade Agreement (CUSFTA) of 1989. We calibrate our model to the pre-trade li...Read more...

Holger Breinlich and Alejandro Cuñat

May 2010

CEP discussion paper
Relative Factor Endowments and International Portfolio Choice

This paper presents a model of international portfolio choice based on cross-country differences in relative factor abundance. Countries have varying degrees of similarity in their factor endowment ratios, and are subjec...Read more...

Alejandro Cuñat and Christian Fons-Rosen

July 2008

CEP discussion paper
Tax Cuts in Open Economies

A reduction in income tax rates generates substantial dynamic responses within the framework of the standard neoclassical growth model. The short-run revenue loss after an income tax cut is partly - or, depending on para...Read more...

Alejandro Cuñat, Szabolcs Deak and Marco Maffezzoli

March 2008

CEP discussion paper
Volatility, Labor Market Flexibility, and the Pattern of Comparative Advantage

This paper studies the link between volatility, labor market flexibility, and international trade. International differences in labor market regulations affect how firms can adjust to idiosyncratic shocks. These institut...Read more...

Alejandro Cuñat and Marc J. Melitz

June 2007

CEP discussion paper
Can Comparative Advantage Explain the Growth of US Trade?

We present a dynamic comparative advantage model in which moderate reductions in trade costs can generate sizable increases in trade volumes over time. A fall in trade costs has two effects on the volume of trade. First,...Read more...

Alejandro Cuñat and Marco Maffezzoli

January 2005