Monopsonistic competition, trade, and the profit share*
构建了一个包含买方垄断竞争和异质性企业的可处理贸易模型，发现贸易在合理参数下能提高利润份额，从而解释了劳动份额下降和企业利润上升的现象。
Abstract I present a tractable international trade model of monopsonistic competition and heterogeneous firms, in which markups and markdowns are increasing with the size of firms. The model sheds new light on the effects of trade on the aggregate profit share. In a standard model with a Pareto distribution of firm characteristics, the profit share is constant; by augmenting the model with the assumption of monopsonistic competition, trade can increase the profit share under reasonable assumptions for the parameter values. Monopsonistic competition is, thus, a contributing factor to the documented decline in the labor share and rise in corporate profits.