Income Distribution, Product Quality, and International Trade
The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111013095506 http://hdl.handle.net/10986/3609 |
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okr-10986-36092021-04-23T14:02:11Z Income Distribution, Product Quality, and International Trade Fajgelbaum, Pablo Grossman, Gene M. Helpman, Elhanan AGGREGATE DEMAND BASKET OF GOODS BILATERAL TRADE BRAND BRANDS CARS CLOSED ECONOMY COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PREFERENCES CONSUMERS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC MARKET ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITIES ELASTICITIES OF DEMAND ELASTICITY EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EXPENDITURE EXPORT MARKET EXPORTS GDP HIGH TRANSPORT HOME MARKET INCOME INCOME ELASTICITY OF DEMAND INCOME GROUPS INCOME LEVELS INTERNATIONAL TRADE INTERSECTIONS MARGINAL COST MARGINAL UTILITY MARGINAL VALUE MARKET CONDITIONS MARKET SEGMENT MARKET SEGMENTS MARKET SHARE MARKET STRUCTURE MONOPOLISTIC COMPETITION NATIONAL INCOME NET EXPORTS OLIGOPOLY OPEN ECONOMY OPTIMIZATION ORDERING PER CAPITA INCOME POPULATION GROWTH PRICE CHANGES PRICE INDEXES PRICE SETTING PRODUCT QUALITY PRODUCTIVITY REDISTRIBUTION SALE SALES SHIPPING SHIPPING COSTS SPREAD SUBSTITUTES SUPPLIERS TOTAL SALES TRADE LIBERALIZATION TRADE POLICY TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS TRUE UTILITY FUNCTION VALUATION VARIABLE COSTS The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety of a differentiated product. The distribution of preferences generates a nested-logit demand structure such that the fraction of consumers who buy a higher-quality product rises with income. The model features a home-market effect that helps to explain why richer countries export higher-quality goods. It provides a tractable tool for studying the welfare consequences of trade and trade policy for different income groups in an economy. 2012-03-19T18:05:29Z 2012-03-19T18:05:29Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111013095506 http://hdl.handle.net/10986/3609 English Policy Research working paper ; no. WPS 5843 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE DEMAND BASKET OF GOODS BILATERAL TRADE BRAND BRANDS CARS CLOSED ECONOMY COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PREFERENCES CONSUMERS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC MARKET ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITIES ELASTICITIES OF DEMAND ELASTICITY EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EXPENDITURE EXPORT MARKET EXPORTS GDP HIGH TRANSPORT HOME MARKET INCOME INCOME ELASTICITY OF DEMAND INCOME GROUPS INCOME LEVELS INTERNATIONAL TRADE INTERSECTIONS MARGINAL COST MARGINAL UTILITY MARGINAL VALUE MARKET CONDITIONS MARKET SEGMENT MARKET SEGMENTS MARKET SHARE MARKET STRUCTURE MONOPOLISTIC COMPETITION NATIONAL INCOME NET EXPORTS OLIGOPOLY OPEN ECONOMY OPTIMIZATION ORDERING PER CAPITA INCOME POPULATION GROWTH PRICE CHANGES PRICE INDEXES PRICE SETTING PRODUCT QUALITY PRODUCTIVITY REDISTRIBUTION SALE SALES SHIPPING SHIPPING COSTS SPREAD SUBSTITUTES SUPPLIERS TOTAL SALES TRADE LIBERALIZATION TRADE POLICY TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS TRUE UTILITY FUNCTION VALUATION VARIABLE COSTS |
| spellingShingle |
AGGREGATE DEMAND BASKET OF GOODS BILATERAL TRADE BRAND BRANDS CARS CLOSED ECONOMY COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVE ADVANTAGE COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PREFERENCES CONSUMERS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC MARKET ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITIES ELASTICITIES OF DEMAND ELASTICITY EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EXPENDITURE EXPORT MARKET EXPORTS GDP HIGH TRANSPORT HOME MARKET INCOME INCOME ELASTICITY OF DEMAND INCOME GROUPS INCOME LEVELS INTERNATIONAL TRADE INTERSECTIONS MARGINAL COST MARGINAL UTILITY MARGINAL VALUE MARKET CONDITIONS MARKET SEGMENT MARKET SEGMENTS MARKET SHARE MARKET STRUCTURE MONOPOLISTIC COMPETITION NATIONAL INCOME NET EXPORTS OLIGOPOLY OPEN ECONOMY OPTIMIZATION ORDERING PER CAPITA INCOME POPULATION GROWTH PRICE CHANGES PRICE INDEXES PRICE SETTING PRODUCT QUALITY PRODUCTIVITY REDISTRIBUTION SALE SALES SHIPPING SHIPPING COSTS SPREAD SUBSTITUTES SUPPLIERS TOTAL SALES TRADE LIBERALIZATION TRADE POLICY TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS TRUE UTILITY FUNCTION VALUATION VARIABLE COSTS Fajgelbaum, Pablo Grossman, Gene M. Helpman, Elhanan Income Distribution, Product Quality, and International Trade |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5843 |
| description |
The authors develop a framework for
studying trade in horizontally and vertically differentiated
products. In their model, consumers with heterogeneous
incomes and tastes purchase a homogeneous good and make a
discrete choice of quality and variety of a differentiated
product. The distribution of preferences generates a
nested-logit demand structure such that the fraction of
consumers who buy a higher-quality product rises with
income. The model features a home-market effect that helps
to explain why richer countries export higher-quality goods.
It provides a tractable tool for studying the welfare
consequences of trade and trade policy for different income
groups in an economy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fajgelbaum, Pablo Grossman, Gene M. Helpman, Elhanan |
| author_facet |
Fajgelbaum, Pablo Grossman, Gene M. Helpman, Elhanan |
| author_sort |
Fajgelbaum, Pablo |
| title |
Income Distribution, Product Quality, and International Trade |
| title_short |
Income Distribution, Product Quality, and International Trade |
| title_full |
Income Distribution, Product Quality, and International Trade |
| title_fullStr |
Income Distribution, Product Quality, and International Trade |
| title_full_unstemmed |
Income Distribution, Product Quality, and International Trade |
| title_sort |
income distribution, product quality, and international trade |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111013095506 http://hdl.handle.net/10986/3609 |
| _version_ |
1764387427128967168 |