Trade Theory in Computable General Equilibrium Models
Dixon, Peter B. / Jerie, Michael / Rimmer, Maureen T. This book is for people who want to understand modern trade theory, particularly the Melitz model. It lays out Melitz theory from first principles and relates it to earlier theories of Armington and Krugman. For trade theory specialists, the book produces some significant conclusions. It identifies conditions under which Krugman and Melitz models produce essentially the same results for the welfare effects of trade liberalization as those o...