A continuum of goods is introduced into the general Ricardian model of international trade. By looking at the derived demand for labor, it is demonstrated that the analysis of the model can be reduced ...

This paper develops a Ricardian model of trade in which goods are indexed according to priority and higher‐indexed goods are consumed only by richer households. South (North) has a comparative ...

This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a ...

This paper assesses the spillovers from different facets of China rebalancing using a calibrated Ricardian trade model that includes 41 economies, each consisting of 34 sectors. We find that China’s ...