Expansion of Trade at the Extensive Margin: A General Gains-from-Trade Result and Illustrative Examples

James R. Markusen

NBER Working Paper No. 15926
Issued in April 2010

---- Acknowledgements -----

This paper is a revision of a long-stalled earlier version circulated and presented in 2006 and 2007 under the title “Expansion of trade at the extensive margin: welfare and trade-volume consequences”. The paper was presented at the Athens ETSG and at CESifo Munich in September 2007 and in a couple of other places I can’t remember. I appreciate comments received then and added comments, suggestions and references are most welcome now. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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