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 …

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 …

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 …

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 …

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 …