The US Gains From Trade: Valuation Using the Demand for Foreign Factor Services
Name
jep.32.2.3.pdf
Description
Published version
Size
883.59 KB
Format
Adobe PDF
Checksum (MD5)
919e0a44ea5fdfb63dee5500a033b93c
Author(s)
Costinot, Arnaud
Rodríguez-Clare, Andrés
Date Issued
2018
Journal
Journal of Economic Perspectives
Publisher
American Economic Association
Citation
Costinot, Arnaud, and Andrés Rodríguez-Clare. "The US Gains from Trade: Valuation Using the Demand for Foreign Factor Services." Journal of Economic Perspectives, 32, 2 (Spring 2018): 3-24.
Version
Final published version
Abstract
About eight cents out of every dollar spent in the United States is spent on imports. What if, because of a wall or some other extreme policy intervention, imports were to remain on the other side of the US border? How much would US consumers be willing to pay to prevent this hypothetical policy change from taking place? The answer to this question represents the welfare cost from autarky or, equivalently, the welfare gains from trade. In this article, we discuss how to evaluate these gains using estimates of the demand for foreign factor services.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1257/JEP.32.2.3
