Goods Heterogeneity and Its Aggregate Implications

2015 Fiscal Year Final Research Report

• Project/Area Number: 26885043
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Single-year Grants
• Research Field: Economic theory
• Research Institution: Osaka University
• Principal Investigator: Ishise Hirokazu 大阪大学, 国際公共政策研究科, 講師 (80729179)
• Project Period (FY): 2014-08-29 – 2016-03-31
• Keywords: 財の異質性 / 貿易 / 経済厚生 / 資本の経過年数

Outline of Final Research Achievements

First, I consider how heterogeneity in capital goods affects international trade patterns, and show a novel source of comparative advantage: the magnitude of heterogeneity in capital goods. An extension of the model, which includes fixed trade cost, describes a sorting situation in which the most productive production units (which are generally newer vintage) export, the moderately productive units serve the domestic market, and the least productive units (older) do not operate.

Second, I consider the role of international trade to explain cross-country differences in total factor productivity. By using a multi-country Ricardian trade model, I distinguish trade costs and trade policy factors from a pure technology factor in TFP. My model shows that conventional TFP measures overestimate fundamental productivity differences by 30%. I then show that trade costs significantly influence welfare, and trade policy also has some impacts.

Free Research Field

マクロ経済学、国際経済学