Together at Last: Trade Costs, Demand Structure, and Welfare
发现，在垄断竞争模型中放松CES偏好假设后，贸易受限时市场整合与分割行为不同，全球化与降低贸易成本对产出和福利的影响相反，且校准贸易收益需要更多参数。
We show that relaxing the assumption of CES preferences in monopolistic competition has surprising implications when trade is restricted. Integrated and segmented markets behave differently, the latter typically exhibiting reciprocal dumping. Globalization and lower trade costs have different effects. The former reduces spending on all existing varieties, the latter switches spending from home to imported varieties; when demands are less convex than CES, globalization raises whereas lower trade costs reduce firm output. Finally, calibrating gains from trade is harder. Many more parameters are needed, while import demand elasticities typically overestimate the true elasticities, and so underestimate the gains from trade.