Globalization and the Gains from Variety

Weinstein, David E.; Broda, Christian

doi:10.3386/w10314

Cited by 460 publications

(762 citation statements)

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“…It also in uences the strength of the expenditure switching e¤ect. Using U.S. data, Broda and Weinstein (2006) nd that the median estimate of the cross-country substitutability ranges between 2.3 and 3.7, depending on the aggregation level and time period. Feenstra et al (2011) nd that the median estimate of the micro elasticity (substitution between di¤erent import suppliers) between U.S. and foreign countries is roughly 3, while the macro elasticity (substi-tution between home production and imports) does not signi cantly di¤er from unity.…”

Section: Parameter Valuesmentioning

confidence: 99%

China, the Dollar Peg and U.S. Monetary Policy

Tervala

2014

SSRN Journal

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I examine the transmission of expansionary U.S. monetary policy in case where developing countries--including China--peg their currencies to the dollar. I evaluate the value of the dollar peg as a fraction of consumption that households would be willing to pay for the dollar peg to remain as well off under the dollar peg as under a flexible exchange rate. The value of the dollar peg is positive for the dollar bloc because the U.S. can no longer improve its terms of trade at the dollar bloc's expense. This provides a rationale for fixing the exchange rate. If the expenditure switching effect is weak, the peg is harmful to the U.S., providing a rationale for criticism of China's exchange rate policy.JEL Classification: E32, E52, F30, F41, F44

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Section: Parameter Valuesmentioning

confidence: 99%

China, the Dollar Peg and U.S. Monetary Policy

Tervala

2014

SSRN Journal

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“…22 We use the estimates of trade elasticities by Broda and Weinstein (2006) and let EOS i denote the elasticity of substitution for sector i. If home-market effects are the only force that matters for the location of export-oriented industries at lower distances, EOS i would be expected to pick up the distance gradient estimated before.…”

Section: Alternative Mechanismsmentioning

confidence: 99%

“…Notes: All regressions are estimated with OLS. EOS is industry-specific elasticity of substitution calculated using Broda and Weinstein (2006) trade elasticities. W eight is industry-specific weight/value ratio of US imports.…”

Section: Propositionmentioning

confidence: 99%

Internal Geography, International Trade, and Regional Specialization

Cosar¹,

Fajgelbaum²

2013

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“…While many models of the so-called new trade theory feature some elements of classical gains from trade due to endowment differences (Helpman and Krugman, 1987) and Ricardian comparative advantage associated with technology differences across countries (Eaton and Kortum, 2002;Melitz, 2003), the key paradigm of most of the models in new trade theory are gains from variety associated with products available to consumers in the open economy but not under autarky (Dixit and Stiglitz, 1977;Krugman, 1979;Feenstra, 1994;Broda and Weinstein, 2006).…”

Section: Introductionmentioning

confidence: 99%

Cultural Integration and Export Variety Overlap across Countries

Egger¹,

Lassmann²

2016

The Economics of Language Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper assesses the role of a larger degree of common language use between the populations of two countries on the so-called extensive product margin of trade. We focus on the overlap of products exported or imported between any pair of countries. The results suggest that the effect of varying aspects of sharing a common language on the variety overlap is both positive and important. The effect of sharing a common spoken language exceeds the one of common native language, implying that a larger overlap in language proficiency is quantitatively more important than a higher cultural proximity. Terms of use: Documents in EconStor mayJEL-Code: C310, F140, F150, Z100.

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Globalization and the Gains from Variety

Cited by 460 publications

References 12 publications

China, the Dollar Peg and U.S. Monetary Policy

China, the Dollar Peg and U.S. Monetary Policy

Internal Geography, International Trade, and Regional Specialization

Cultural Integration and Export Variety Overlap across Countries

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