Measuring the Unequal Gains from Trade
Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and parameters estimated from a non-homothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors.
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Copy CitationPablo D. Fajgelbaum and Amit K. Khandelwal, "Measuring the Unequal Gains from Trade," NBER Working Paper 20331 (2014), https://doi.org/10.3386/w20331.
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Published Versions
Fajgelbaum, Pablo D. and Amit K. Khandelwal (2016), "Measuring the Unequal Gains from Trade," The Quarterly Journal of Economics, 131 (3): 1113-1180. citation courtesy of 
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