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dc.contributor.authorBehrens, Kristianen_US
dc.contributor.authorMion, Giordanoen_US
dc.contributor.authorMurata, Yasusadaen_US
dc.contributor.authorSüdekum, Jensen_US
dc.date.accessioned2008-09-26en_US
dc.date.accessioned2010-07-07T11:35:46Z-
dc.date.available2010-07-07T11:35:46Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008092963en_US
dc.identifier.urihttp://hdl.handle.net/10419/35285-
dc.description.abstractWe develop a new general equilibrium model of trade with heterogeneous firms, variable demand elasticities and endogenously determined wages. Trade integration favors wage convergence, intensifies competition, and forces the least efficient firms to leave the market, thereby affecting aggregate productivity. Since wage and productivity responses are endogenous, our model is well suited to study the impacts of trade integration on aggregate productivity and factor prices. Using Canada-U.S. interregional trade data, we first estimate a system of theory-based gravity equations under the general equilibrium constraints generated by the model. Doing so allows us to measure 'border effects' and to decompose them into a 'pure' border effect, relative and absolute wage effects, and a selection effect. Using the estimated parameter values, we then quantify the impacts of removing the Canada-U.S. border on wages, productivity, markups, the share of exporters, the mass of varieties produced and consumed, and welfare. We finally provide a similar quantification with respect to regional population changes.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA discussion papers 3682en_US
dc.subject.jelF21en_US
dc.subject.ddc330en_US
dc.subject.keywordHeterogeneous firmsen_US
dc.subject.keywordgravity equationsen_US
dc.subject.keywordgeneral equilibriumen_US
dc.subject.keywordmonopolistic competitionen_US
dc.subject.keywordvariable demand elasticitiesen_US
dc.subject.stwHandelsregionalismusen_US
dc.subject.stwWirtschaftsintegrationen_US
dc.subject.stwGrenzgebieten_US
dc.subject.stwLohnen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwGravitationsmodellen_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwMonopolistischer Wettbewerben_US
dc.subject.stwKanadaen_US
dc.subject.stwUSAen_US
dc.titleTrade, wages, and productivityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn578593580en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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