Results

Journal article

Journal of International Economics: Forthcoming

Accounting for trade patterns

We develop a quantitative framework for decomposing trade patterns. We derive price indexes that determine comparative advantage and the aggregate cost of living. If firms and products are imperfect substitutes, we show ...Read more...

CEP discussion paper

Who's paying for the US tariffs? A longer-term perspective

Using data from 2018, a number of studies have found that recent U.S tariffs have been passed on entirely to U.S. importers and consumers. These results are surprising given that trade theory has long stressed that tarif...Read more...

Journal article

Quarterly Journal of Economics:

Measuring Aggregate Price Indices with Taste Shocks: Theory and Evidence for CES Preferences

We develop an approach to measuring the cost of living for CES preferences that treats demand shocks as taste shocks that are equivalent to price shocks. In the presence of relative taste shocks, the Sato-Vartia price in...Read more...

Journal article

Journal of Economic Perspectives:

The impact of the 2018 tariffs on prices and welfare

We examine conventional approaches to evaluating the economic impact of protectionist trade policies. We illustrate these conventional approaches by applying them to the tariffs introduced by the Trump administration dur...Read more...

Blog

LSE Business Review:

The 2018 trade war: consumers are paying a high price

Over the course of 2018, the Trump administration imposed import tariffs on approximately $283 billion of US imports, with rates ranging between 10 and 50 per cent. In response, US trading partners, especially China, ret...Read more...

CentrePiece article

The impact of the 2018 trade war on US prices and welfare

What has been happening to the US economy as a result of the Trump administration's 2018 round of import tariffs? Research by Mary Amiti, Stephen Redding and David Weinstein estimates the effects of this change in US tra...Read more...

CEP discussion paper

The impact of the 2018 trade war on US prices and welfare

This paper explores the impacts of the Trump administration’s trade policy on prices and welfare. Over the course of 2018, the U.S. experienced substantial increases in the prices of intermediates and final goods, dramat...Read more...

CEP discussion paper

Aggregation and the gravity equation

One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristic...Read more...

CEP discussion paper

Aggregating from micro to macro patterns of trade

We develop a new framework for aggregating from micro to macro patterns of trade. We derive price indexes that determine comparative advantage across countries and sectors and the aggregate cost of living. If firms and p...Read more...

CEP discussion paper

A unified approach to estimating demand and welfare

The measurement of price changes, economic welfare, and demand parameters is currently based on three disjoint approaches: macroeconomic models derived from time-invariant utility functions, microeconomic estimation base...Read more...

Journal article

The Quarterly Journal of Economics:

Quantifying the sources of firm heterogeneity

We develop and structurally estimate a model of heterogeneous multiproduct firms that can be used to decompose the firm-size distribution into the contributions of costs, "appeal" (quality or taste), markups, and product...Read more...

CEP discussion paper

What is 'firm heterogeneity' in trade models? The role of quality, scope, markups and cost

We estimate a structural model of heterogeneous multiproduct firms to examine the sources of firm heterogeneity emphasized in the recent trade and macro literatures. Using Nielsen barcode data on prices and sales, we est...Read more...