Skill Premium and Trade Puzzles: a Solution Linking Production and Preferences

Justin Caron, Thibault Fally, James R. Markusen

NBER Working Paper No. 18131
Issued in June 2012

---- Acknowledgements -----

We thank Peter Egger, Lionel Fontanie, Gordon Hanson, Wolfgang Keller, Keith Maskus, Tobias Seidel and seminar participants at the Paris School of Economics, ETH Zurich, UC San Diego and the University of Colorado-Boulder for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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