TY  - JOUR
AU  - Costinot,Arnaud
AU  - Komunjer,Ivana
TI  - What Goods Do Countries Trade? New Ricardian Predictions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13691
PY  - 2007
Y2  - December 2007
UR  - http://www.nber.org/papers/w13691
L1  - http://www.nber.org/papers/w13691.pdf
N1  - Author contact info:
Arnaud Costinot
Department of Economics
MIT, E52-243B
50 Memorial Drive
Cambridge MA 02142-1347
Tel: 617/324-1712
Fax: 617/253-1330
E-Mail: costinot@mit.edu

Ivana Komunjer
Department of Economics
University of California, San Diego
9500 Gilman Drive
La Jolla, CA 92093-0508
Tel: 858 822-0667
E-Mail: komunjer@ucsd.edu
AB  - Though one of the pillars of the theory of international trade, the extreme predictions of the Ricardian model have made it unsuitable for empirical purposes. A seminal contribution of Eaton and Kortum (2002) is to demonstrate that random productivity shocks are sufficient to make the Ricardian model empirically relevant. While successful at explaining trade volumes, their model remains silent with regards to one important question: What goods do countries trade? Our main contribution is to generalize their approach and provide an empirically meaningful answer to this question.
ER  -