Trade , wages , and productivity

  title={Trade , wages , and productivity},
  author={Kristian Behrens and Giordano Mion and Yasusada Murata and Jens S{\"u}dekum},
We develop a new general equilibrium model of trade in which wages, productivity, and markups are endogenous and need not be equalized across asymmetric regions. Using CanadaUS regional data, we structurally estimate a gravity equation for bilateral trade subject to general equilibrium conditions. The estimated model is then used to simulate the impacts of removing all trade barriers generated by the Canada-US border. The counterfactual analysis reveals that ignoring endogenous wage and… CONTINUE READING
13 Citations
31 References
Similar Papers


Publications citing this paper.


Publications referenced by this paper.
Showing 1-10 of 31 references

Advanced International Trade

  • R. E. Feenstra
  • 2004
Highly Influential
4 Excerpts

Structural estimation and the border puzzle

  • E. J. Balistreri
  • Hillberry
  • 2007
Highly Influential
4 Excerpts

National borders matter: Canada-US regional trade patterns

  • J. M. McCallum
  • American Economic Review
  • 1995
Highly Influential
5 Excerpts

Similar Papers

Loading similar papers…