Estimating the gains from trade in frictional local labor markets
提出理论和实证方法，估计在存在摩擦的地方劳动力市场中贸易带来的福利收益，并以德国与中欧贸易为例，发现考虑摩擦后福利收益比无摩擦情形高5.5%。
Abstract We develop a theory and an empirical strategy to estimate the welfare gains from trade in economies with frictional local labor markets. Our welfare formula nests standard market structures and adds an adjustment margin via the employment rate. To identify two key parameters – the trade elasticity and the elasticity of substitution in consumption – we use a theoretically consistent identification strategy that exploits variation in industrial composition across local labor markets. Examining Germany's recent trade integration with China and Eastern Europe, we find that under monopolistic competition with free entry and firm heterogeneity, the welfare gains are 5.5 percent higher than in frictionless settings.