Advertisement

Swiss Journal of Economics and Statistics

, Volume 145, Issue 4, pp 387–403 | Cite as

Taste Heterogeneity, Trade, and the Within-Industry Home Market Effect

  • Raphael Auer
Open Access
Article

JEL-Classification

F12 

Keywords

home-bias within-industry trade product heterogeneity 

References

  1. Atkin, David G. (2009), “Trade, Tastes and Nutrition in India”, Mimeo, Yale University.Google Scholar
  2. Anderson, James E., and Eric van Wincoop (2003), “Gravity with Gravitas: a Solution to the Border Puzzle”, The American Economic Review, 93 (1), pp. 170–92.CrossRefGoogle Scholar
  3. Anderson, Simon P., André de Palma, and Jacques-François Thisse (1987), “The CES is a Discrete Choice Model?”, Economics Letters, 24 (2), pp. 139–140.CrossRefGoogle Scholar
  4. Anderson, Simon P., André de Palma, and Jacques-François Thisse (1992), “Discrete Choice Theory of Product Differentiation”, Cambidge: MIT Press.Google Scholar
  5. Arkolakis, Costas (2008), “Market Penetration Costs and the New Consumers Margin in International Trade”, National Bureau of Economic Research, Working Paper No. 14214.CrossRefGoogle Scholar
  6. Arkolakis, Costas, Arnaud Costinot, and Andres Rodriguez-Clare (2009), “New Theories, Same Old Gains?”, Mimeo, Yale University.CrossRefGoogle Scholar
  7. Armington, Paul S. (1969), “A Theory of Demand for Products Distinguished by Place of Production”, IMF Staff Papers 16), pp. 159–176.Google Scholar
  8. Auer, Raphael (2008), “Product Heterogeneity, Trade Liberalization, and the Dynamics of Industry”, Mimeo, SNB (available on request).Google Scholar
  9. Auer, Raphael (2009), “Product Heterogeneity, Within-Industry Trade Patterns, and the Home Bias of Consumption”, Study Center Gerzensee, Working Paper, Number 09.05Google Scholar
  10. Auer, Raphael, and Thomas Chaney (2007), “How Do the Prices of Different Goods Respond to Exchange Rate Shocks? A Model of Quality Pricing-to-Market”, Mimeo, University of Chicago.Google Scholar
  11. Auer, Raphael, and Thomas Chaney (2009), “Exchange Rate Pass-Through in a Competitive Model of Pricing-to-Market”, Journal of Money, Credit and Banking, 41 (s1), pp. 151–175.CrossRefGoogle Scholar
  12. Auer, Raphael, and Philip Saure (2009), “Spatial Competition in Quality”, Mimeo, SNB (available on request).Google Scholar
  13. Baldwin, Richard, and James Harrigan (2007), “Zeros, Quality and Space: Trade Theory and Trade Evidence”, National Bureau of Economic Research, Working Paper No. 13214.CrossRefGoogle Scholar
  14. Bernard, Andrew B., Jonathan Eaton, J. Bradford Jensen, and Samuel Kortum (2003), “Plants and Productivity in International Trade”, The American Economic Review, 93(4), pp. 1268–1290.CrossRefGoogle Scholar
  15. Bernard, Andrew B., J. Bradford Jensen, Stephen J. Redding, and Peter K. Schott (2007), “Firms in International Trade”, The Journal of Economic Perspectives, 21 (3), pp. 105–130.CrossRefGoogle Scholar
  16. Bernard, Andrew B., Stephen J. Redding, and Peter K. Schott (2009), “Multi-Product Firms and Trade Liberalization”, Mimeo, revised version of NBER Working Paper No. 12782.Google Scholar
  17. Chaney, Thomas (2008), “Distorted Gravity: The Intensive and Extensive Margins of International Trade”, The American Economic Review, 98 (4), pp. 1707–1721.CrossRefGoogle Scholar
  18. Choi, Yo Chul, David Hummels, and Chong Xiang (forthcoming), “Explaining Import Quality: the Role of the Income Distribution”, The Journal of International Economics.Google Scholar
  19. Cunat, Alejandro, and Marco Maffezzoli (forthcoming), “Can Comparative Advantage Explain the Growth of US Trade”, The Economic Journal.Google Scholar
  20. Davis, Don R. (1998), “The Home Market, Trade, and Industrial Structure”, The American Economic Review, 88 (5), pp. 1264–1276.Google Scholar
  21. Dixit, Avinash V., and Joseph E. Stiglitz (1977), “Monopolistic Competition and Optimum Product Diversity”, The American Economic Review, 67 (3), pp. 297–308.Google Scholar
  22. Eaton, Jonathan, Samuel Kortum, and Francis Kramarz (2008), “An Anatomy of International Trade: Evidence from French Firms”, Mimeo.Google Scholar
  23. Fajgelbaum, Pablo, Gene Grossman, and Elhanan Helpman (2009), “Income Distribution, Product Quality and International Trade”, Mimeo, Princeton University.CrossRefGoogle Scholar
  24. Foellmi, Reto, Christian Hepenstrick, and Josef Zweimueller (2008), “Income Effects in the Theory of Monopolistic Competition and International Trade”, Mimeo, University of Zurich.Google Scholar
  25. Gabaix, Xavier, David Laibson, Deyuan Li, Hongyi Li, and Caspar G. de Vries (2006), “On Extreme Value Theory and Market Demand”, Mimeo, MIT.Google Scholar
  26. Gabaix, Xavier, David Laibson, Deyuan Li, Hongyi Li, Sidney Resnick, and Caspar G. de Vries (2009), “Competition and Prices: Insights from Extreme Value Theory”, Mimeo, NYU Stern.Google Scholar
  27. Hallak, Juan Carlos (2006), “Product Quality and the Direction of Trade”, The Journal of International Economics, 68 (1), pp. 238–265.CrossRefGoogle Scholar
  28. Hallak, Juan Carlos (Forthcoming), “A Product-Quality View of the Linder Hypothesis”, Review of Economics and Statistics.Google Scholar
  29. Hallak, Juan Carlos, and Peter Schott (2008), “Estimating Cross-Country Differences in Product Quality”, National Bureau of Economic Research, Working Paper No. 13807.CrossRefGoogle Scholar
  30. Hallak, Juan Carlos, and Jagadeesh Sivadasan (2009), “Firms’ Exporting Behavior under Quality Constraints”, National Bureau of Economic Research, Working Paper No. 14928.CrossRefGoogle Scholar
  31. Hanson, Gordon and Chong Xiang (2004), “The Home-Market Effect and Bilateral Trade Patterns”, The American Economic Review, 2004, 94, (4), pp. 1108–1129CrossRefGoogle Scholar
  32. Hummels, David, and James Levinsohn (1995), “Monopolistic Competition and International Trade: Reconsidering the Evidence”, The Quarterly Journal of Economics, 110 (3), pp. 799–836.CrossRefGoogle Scholar
  33. Hummels, David, and Peter Klenow (2005), “The Variety and Quality of a Nation’s Exports”, The American Economic Review, 95 (3), pp. 704–723.CrossRefGoogle Scholar
  34. Johnson, Robert C. (2008), “Trade and Prices with Heterogeneous Firms”, Mimeo, Department of Economics, University of California at Berkeley.Google Scholar
  35. Kehoe, Timothy J. and Kim J. Ruhl (2006), “How Important is the New Goods Margin in International Trade?”, Mimeo, University of Minnesota.Google Scholar
  36. Krugman, Paul R. (1979), “A Model of Innovation, Technology Transfer, and the World Distribution of Income”, The Journal of Political Economy, 87 (2), pp. 253–266.CrossRefGoogle Scholar
  37. Krugman, Paul R. (1980), “Scale Economies, Product Differentiation, and the Pattern of Trade”, The American Economic Review, 70 (5), pp. 950–959.Google Scholar
  38. Krugman, Paul R. (1981), “Intraindustry Specialization and the Gains from Trade”, The Journal of Political Economy, 89 (5), pp. 959–973.CrossRefGoogle Scholar
  39. Kugler, Maurice, and Eric A. Verhoogen (2008), “Product Quality at the Plant Level: Plant Size, Exports, Output Prices and Input Prices in Colombia”, National Bureau of Economic Research, Working Paper No. 14418.Google Scholar
  40. Linder, Staffan B. (1961), An Essay on Trade and Transformation. New York: John Wiley & Sons.Google Scholar
  41. Mayer, Thierry, Marc J. Melitz, and Gianmarco Ottaviano (2009), “Market Size, Competition, and the Product Mix of Exporters”, Mimeo, Harvard UniversityGoogle Scholar
  42. McFadden, Daniel L. (1981), “Econometric Models of Probabilistic Choice”, in: Charles F. Manski and Daniel L. McFadden (eds), Structural Analysis of Discrete Data with Econometric Applications (pp. 198–242), Cambidge: MIT Press.Google Scholar
  43. Melitz, Marc J. (2003), “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, 71 (6), pp. 1695–1725.CrossRefGoogle Scholar
  44. Melitz, Marc J., and Gianmarco Ottaviano (2008), “Market Size, Trade, and Productivity”, Review of Economic Studies, 75 (1), pp. 295–316.CrossRefGoogle Scholar
  45. Mussa, Michael, and Sherwin Rosen (1978), “Monopoly and Product Quality”, The Journal of Economic Theory, 18 (2), pp. 301–317.CrossRefGoogle Scholar
  46. Ruhl, K. (2008), “The International Elasticity Puzzle”, Mimeo NYU.Google Scholar
  47. Schott, Peter K. (2004), “Across-Product versus Within-Product Specialization in International Trade”, The Quarterly Journal of Economics, 119 (2), pp. 647–678.CrossRefGoogle Scholar
  48. Trefler, Daniel (1995), “The Case of the Missing Trade and Other Mysteries”, The American Economic Review, 85 (5), pp. 1029–1046.Google Scholar
  49. Verhoogen, Eric A. (2008), “Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector”, The Quarterly Journal of Economics, 123 (2), pp. 489–530.CrossRefGoogle Scholar
  50. Yi, Kei-Mu (2003), “Can Vertical Specialization Explain the Growth of World Trade?”, The Journal of Political Economy, 111 (1), pp. 52–102.CrossRefGoogle Scholar

Copyright information

© Swiss Society of Economics and Statistics 2009

Authors and Affiliations

  1. 1.Swiss National Bank (on leave at Princeton University)Switzerland

Personalised recommendations