This page includes a working paper and auxiliary documents related
to our project exploring the Armington, Krugman, and Melitz
international trade structures as we progressively add data and
features consistent with performing actual policy analysis.

Edward J. Balistreri and David G. Tarr

December 2021

Authors Description Links
Balistreri
Tarr

"Comparison of Welfare Gains in the Armington, Krugman
and Melitz Models: insights based on a structural gravity approach"

The link is to the working paper available on SSRN, revised August 2020.
The final paper was recently accepted for future publication in Economic Inquiry.

The data and computer code is made available here for replication purposes.

Working Paper: SSRN: 3311155

Data and Code: model_dist_econinq.zip
Balistreri
Tarr
"Mathematics of the Armington, Krugman and Melitz Models with
Multiple Sectors and Heterogeneous Regions, With Detailed Derivations"

In this working paper we provide detailed textbook-style mathematical
derivations of extended versions of the Armington, Krugman, and Melitz
structures as they might be formulated in applied policy models revised
September 2020.
SSRN: 3517390
Balistreri
Tarr
Online Appendix: Sensitivity Analysis for "Comparison of Welfare
Gains in the Armington, Krugman and Melitz Models: Insights from a
Structural Gravity Model."

In this appendix we investigate the sensitivity of our results to:
(i) our three calibration strategies for holding the trade
response equal; (ii) the structural gravity estimate; (iii) not
holding trade responses equal; (iv) increases rather than
decreases in global iceberg trade costs; and (v) the labor-supply
elasticity. May 2021.
Sensitivity
Analysis

Balistreri
Tarr
Online Appendix: Literature Review for "Comparison of Welfare
Gains in the Armington, Krugman and Melitz Models: Insights from a
Structural Gravity Model."

This online appendix includes a more extensive review of literature
related to structural sensitivity across the structures December 2021.
Literature
Review



More on computing heterogeneous-firms trade models can be found on
the CGE handbook chapter page; and for more general applications of
decomposition techniques visit the
MPSGE home page.