First Version : October 1 999 ) Trade Theory and Trade Facts ∗

@inproceedings{Bergoeing2001FirstV,
  title={First Version : October 1 999 ) Trade Theory and Trade Facts ∗},
  author={Raphael Bergoeing and Alberto Hurtado and Timothy J. Kehoe},
  year={2001}
}
This paper quantitatively tests the “new trade theory” based on product differentiation, increasing returns, and imperfect competition. We employ a standard model, which allows both changes in the distribution of income among industrialized countries, emphasized by Helpman and Krugman (1985), and nonhomothetic preferences, emphasized by Markusen (1986), to… CONTINUE READING