Trade

Jonas Hjort · Xuan Li · Heather Sarsons

Many multinationals do not fully adjust wages to the local context of their foreign establishments; instead, they partially link the wages of foreign workers in a given position to the wages paid in …

Marco Errico · Danial Lashkari

Errico and Lashkari address two intertwined problems in the measurement of aggregate price indices: how to account for quality change and variety entry/exit when the demand system is not CES, and how …

Gita Gopinath · Jeremy C Stein

A currency's role as the unit of account in which trade is invoiced and its role as a safe store of value reinforce each other, because households who buy dollar-priced imports want dollar-denominated …

Anna Tompsett

This paper measures the causal effects of land transport infrastructure on economic activity, exploiting quasi-experimental variation in bridge construction over the Mississippi and Ohio Rivers in the …

Farid Farrokhi · Ahmad Lashkaripour

Farrokhi and Lashkaripour (2025) study the interaction between trade policy and climate change. The central research question is whether and how countries can use trade policy — specifically import …

Kristine W. Hankins · Morteza Momeni · David Sovich

Do import tariffs affect consumer credit terms, and does focusing solely on goods prices understate tariff pass-through to consumers? The paper also asks whether vertical integration -- specifically, …

Myrto Kalouptsidi · Yuichi Kitamura · Lucas Lima · Eduardo Souza-Rodrigues

Discrete choice data identify only differences in agents' utilities, not utility levels. In dynamic discrete choice (DDC) models this means many policy-relevant counterfactuals — those requiring …

El Hadi Caoui · Andrew Steck

This paper investigates how buyer demand for supplier diversification shapes entry incentives and market structure, using the global undersea fiber-optic cable industry as the empirical setting. The …

Philippe Bacchetta · Eric van Wincoop

This 2000 American Economic Review paper by Philippe Bacchetta and Eric van Wincoop builds a one-period, two-country monetary general-equilibrium model to ask whether exchange-rate stability really …

Gita Gopinath · Emine Boz · Camila Casas · Federico J. Díez · Pierre-Olivier Gourinchas · Mikkel Plagborg-Møller

Because most trade is invoiced in a few dominant currencies rather than in the producer's or the destination's currency, it is the dollar exchange rate and not the bilateral one that drives import …

Rudiger Dornbusch

Motivated by the large, persistent real appreciation of the dollar between 1980 and 1985, this paper takes the nominal exchange rate movement as given (it does not explain it) and asks, in a …

Emmanuel Dhyne · Ayumu Ken Kikkawa · Toshiaki Komatsu · Magne Mogstad · Felix Tintelnot

The paper asks three related questions in the context of Belgium, a small open economy: (1) What do firms' responses to demand shocks reveal about their cost structures? (2) What are the worker and …

Alessandro Moro · Valerio Nispi Landi

Moro and Nispi Landi develop FraNK, a multi-country New Keynesian model designed to study geoeconomic fragmentation — defined, following Aiyar et al. (2023), as a policy-driven reversal of economic …

Pinelopi K. Goldberg · Michael M. Knetter

This 1997 Journal of Economic Literature survey by Pinelopi Goldberg and Michael Knetter synthesizes nearly 700 articles on the relationship between exchange rates and goods prices, organizing the …

Joaquin Blaum · Federico Esposito · Sebastian Heise

Blaum, Esposito, and Heise study how supply chain risk — specifically, the risk of unexpected shipping delays caused by ocean weather conditions — affects U.S. manufacturing firms' import sourcing …

Mathilde Muñoz

This paper asks whether differences in labor market regulations — specifically payroll taxes and minimum wages — shape countries' comparative advantage in the cross-border provision of labor-intensive …

Saleem Bahaj · Ricardo Reis

This paper asks how a currency achieves international status — moving from zero to positive cross-border use — and whether deliberate central bank policy can accelerate that transition. The authors …

Robert E. Lucas Jr.

This 1988 Journal of Monetary Economics paper by Robert E. Lucas Jr., based on his 1985 Marshall Lectures at Cambridge, sets out a sequence of 'mechanical' growth models -- explicit dynamic systems …

A. K. Rose

This 2000 Economic Policy paper by Andrew Rose asks a simple question -- does sharing a currency boost trade, and by how much -- using a large cross-country panel rather than the handful of …

David Romer

This 1993 Quarterly Journal of Economics paper by David Romer points out and empirically tests a previously unnoticed prediction of Kydland-Prescott-style models of monetary policy without …

Gene M Grossman · Elhanan Helpman · Alejandro Sabal

Grossman, Helpman, and Sabal ask what market failures arise in vertical supply chains with multiple production tiers, limited (non-anonymous) supply networks, arms-length transactions, and recurrent …

Felipe Brugués

This paper studies the efficiency of self-enforced relational agreements in manufacturing supply chains when sellers have market power and contracts cannot be externally enforced. The setting is …

Michela Giorcelli · Bo Li

This paper estimates the causal effect of technology and knowledge transfers on early industrial development using the Sino-Soviet Alliance of the 1950s as a natural experiment. Between 1950 and 1957, …

Richard Portes · Hélène Rey

On a panel of bilateral gross cross-border equity transactions among 14 countries from 1989 to 1996, a gravity specification with market capitalisations, distance and a measure of market …

Ana Cecília Fieler · Jonathan Eaton

Eaton and Fieler seek to reconcile two literatures that have advanced in parallel but remained at odds: (i) general equilibrium models of bilateral trade flows (the "gravity" tradition) and (ii) …

Maurice Obstfeld · Kenneth Rogoff

Six of international macroeconomics' most stubborn puzzles -- home bias in trade, Feldstein-Horioka, home bias in equity portfolios, low consumption correlations, the slow mean reversion of real …

Lars E. O. Svensson

This 1988 American Economic Review paper by Lars Svensson extends the law of comparative advantage from trade in goods to trade in any arbitrarily specified set of risky assets, complete or …