Skip to main content
eScholarship
Open Access Publications from the University of California

Heterogeneity and Trade

  • Author(s): Costinot, Arnaud
  • et al.
Abstract

Aggregate production functions are a standard feature of the trade theorist's toolbox. While this modeling device has generated some fundamental insights, it presents one obvious shortcoming: it necessarily ignores any effect that the distribution of factor endowments across agents may have on international trade flows. This paper develops a general fraemwork that can shed light on these effects and discusses several applications.

Main Content
Current View