Published and Accepted Papers

O-Ring Production Networks with Banu Demir, Daniel Yi Xu, and Kelly Kaily Yang, Journal of Political Economy, 132(1), pp. 200-247, January 2024 Appendix 

A non-technical EGC research summary

Escaping Import Competition in China with Ann Harrison, Journal of International Economics , 145, November 2023, 103835 Appendix [program files]

Trade, Quality Upgrading, and Input Linkages: A Theory with Evidence from Colombia with Marcela Eslava and Daniel Yi Xu, American Economic Review, 108(1), pp. 109-146, January 2018  [appendix] [program files]  

(Indirect) Input Linkages with Marcela Eslava and Daniel Yi Xu, American Economic Review: Papers & Proceedings, 105(5), pp. 662-666, May  2015

Non-Homotheticity and Bilateral Trade: Evidence and a Quantitative Explanation    Econometrica, 79(4), pp. 1069-1101, July 2011  [appendix] [data and program files] 

Work in Progress

The Margins of Trade with Jonathan Eaton, Appendix, R&R at Econometrica

Welfare depends on the quantity, quality, and range of goods consumed.  We use trade data, which report the quantities and prices of the individual goods that countries exchange, to learn about how the gains from trade and growth break down into these different margins.  Our general equilibrium model, in which both quality and quantity contribute to consumption and to production, captures (i) how prices increase with importer and exporter per capita income, (ii) how the range of goods traded rises with importer and exporter size, and (iii) how products traveling longer distances have higher prices.  Our framework can deliver a standard gravity formulation for total trade flows and for the gains from trade.  We find that growth in the extensive margin contributes to about half of overall gains.  Quality plays a larger role in the welfare gains from international trade than from economic growth due to selection. 

Home-Market Effects on Innovation with Justin Caron and Thibault Fally 

We estimate the home-market effect and study its implications for inequality within and across countries. The home-market effect occurs when exogenous differences in demand across countries generate endogenous differences in comparative advantages through technical change that is specific to a country and sector. Estimating it has proved difficult because econometricians do not observe differences in demand. They observe only expenditures, which depends on supply through prices. Our solution is to exploit non-homotheticity in preferences to construct instruments for the location of production, which determines comparative advantage through the home-market effect. Extending previous studies and guided by data, the model features factor-biased technologies and imperfect technology diffusion.  

Other Work

Mapping the Match between UK Exports and Demand in Emerging Markets: Final Report for the Asia Task Force with Jonathan Eaton and Ana Maria Santacreu, report prepared for the United Kingdom Trade & Investment, June 2007

Quality Differentiation in Trade: Theory and Evidence, 2012

Repeated Partnership with Limited Information Flows, 2007