Introduction: What’s in the Book and How to Read It
This book is for people who want to understand modern trade theory, particularly the Melitz model. We lay out the theory from first principles and relate it to earlier theories of Armington and Krugman. For some readers, this will be sufficient to satisfy their requirements. However, the book goes further and shows how Melitz theory can be embedded in computable general equilibrium (CGE) models and how results from these models can then be interpreted.
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