TY  - JOUR
AU  - Albuquerque,Rui
AU  - Rebelo,Sergio
TI  - On the Dynamics of Trade Reform
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6700
PY  - 1998
Y2  - August 1998
UR  - http://www.nber.org/papers/w6700
L1  - http://www.nber.org/papers/w6700.pdf
N1  - Author contact info:
Rui Albuquerque
Boston University
School of Management
595 Commonwealth Avenue
Boston, MA 02215
Tel: 617 3534614
Fax: 617 3536667
E-Mail: ralbuque@bu.edu

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - The empirical evidence on trade reforms suggests that these have a surprisingly small impact on the country's industrial configuration.  This industrial structure inertia is difficult to rationalize in standard trade models.  This paper develops a two-sector industry dynamics model in which industrial composition inertia arises naturally.  The model is then used to study the consequences of different types of trade reforms (e.g. permanent, temporary, gradual, pre-announced) on investment, employment composition, and income distribution.
ER  -