PER Distinguished Lecture: Pablo Fajgelbaum
Pablo Fajgelbaum, "Recent Approaches in International Trade: Gains from Trade Measurement and Spatial Equilibrium Models”
Friday, 10/30/15, 312 Mathematics
Part 1: Recent Approaches to Measuring Aggregate and Unequal Gains from Trade
Understanding the welfare impact of international trade is one of the central tasks pursued by international trade economists. Different approaches have recently been used to measure welfare effects of trade at both the aggregate and individual levels. These approaches differ in terms of the forces that they are able to capture as well as in terms of methodology, ranging from model-based counterfactuals typically based on aggregate data to experimental evidence based on disaggregated data. In this lecture we first lay out the basic theory of the gains from international trade and then review recent applications that represent the different approaches.
Part 2: Quantitative Equilibrium Models: Main Questions and Some Policy Implications
Standard tools from the international trade literature have recently been used to construct models of the spatial distribution of economic activity within countries. What types of questions can be answered with these models, and how are they brought to the data? In this lecture we first outline salient features of these models and review some existing applications. Then we discuss some of their policy implications and focus on recent research that has analyzed the aggregate and regional impacts of spatial policies.