{"id":334,"date":"2009-03-21T09:03:46","date_gmt":"2009-03-21T08:03:46","guid":{"rendered":"http:\/\/people.unil.ch\/mariusbrulhart\/?p=334"},"modified":"2023-02-01T15:07:38","modified_gmt":"2023-02-01T14:07:38","slug":"a-test-of-trade-theories-when-expenditure-is-home-biased","status":"publish","type":"post","link":"https:\/\/people.unil.ch\/mariusbrulhart\/2009\/03\/a-test-of-trade-theories-when-expenditure-is-home-biased\/","title":{"rendered":"A Test of Trade Theories When Expenditure is Home Biased"},"content":{"rendered":"\n<p>with Federico Trionfetti, <em>European Economic Review,\u00a0<\/em>53(7):\u00a0830-845,\u00a02009. <a href=\"https:\/\/people.unil.ch\/mariusbrulhart\/files\/2023\/02\/tradetest.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">See publication<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We develop a criterion to distinguish two dominant paradigms of international trade theory: homogeneous-goods perfectly competitive models, and differentiated-goods monopolistically competitive models. Our analysis makes use of the pervasive presence of home-biased expenditure. It predicts that countries&#8217; relative output and their relative home biases are positively correlated in differentiated-goods sectors (the home-bias effect), while no such relationship exists in homogeneous-goods sectors. This discriminating criterion turns out to be robust to a number of generalisations of the baseline model. Our empirical results, based on a world-wide cross-country data set, suggest that the differentiated-goods model fits particularly well for the machinery, precision engineering and transport equipment industries, which account for some 40% of sample manufacturing output.<\/p>\n","protected":false},"author":1001107,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-peer-reviewed"},"_links":{"self":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/users\/1001107"}],"replies":[{"embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/comments?post=334"}],"version-history":[{"count":0,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/posts\/334\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/media?parent=334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/categories?post=334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.unil.ch\/mariusbrulhart\/wp-json\/wp\/v2\/tags?post=334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}