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  1. Love of variety and gains from trade
    Erschienen: December 2021
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    This paper shows how gains from trade are conditioned by love of variety, defined as the extent to which an additional product variety generates benefits in either final or intermediate consumption. We develop a multi-country, multi-sector gravity... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 63
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    This paper shows how gains from trade are conditioned by love of variety, defined as the extent to which an additional product variety generates benefits in either final or intermediate consumption. We develop a multi-country, multi-sector gravity trade model where love of variety is parameterized separately from product substitutability using a generalized CES demand function, and show analytically how gains from trade depend on love of variety through different channels that we identify and interpret. In this context, except for very specific parameterizations, gains from trade differ between a heterogeneous- and a homogeneous-firm model. Counterfactual simulations based on a calibrated version of this model show that, all other things being equal, the assessed gains from trade commonly vary by a proportion of one to three depending on the value of the love-of-variety elasticity, in a way that differs significantly across countries. Trade war simulations also point to the strong sensitivity of the assessed impacts. We conclude that love of variety is a key determinant of the gains from trade, an aspect that has so far been overlooked for the sake of convenience in the modeling framework and due to lack of empirical estimates.

     

    Export in Literaturverwaltung   RIS-Format
      BibTeX-Format
    Quelle: Verbundkataloge
    Sprache: Englisch
    Medientyp: Buch (Monographie)
    Format: Online
    Weitere Identifier:
    hdl: 10419/249005
    Schriftenreihe: CESifo working paper ; no. 9460 (2021)
    Schlagworte: international trade; firm heterogeneity; gains from trade; gravity; love of variety
    Umfang: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  2. Gains from variety
    refugee-host interactions in Uganda
    Erschienen: September 2023
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    Refugees are mainly hosted in low-income countries, where they often remain for a long time. Therefore, it is important to assess how they integrate with the local economy and to what extent their presence can contribute to the transition to a more... mehr

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    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 4
    keine Fernleihe

     

    Refugees are mainly hosted in low-income countries, where they often remain for a long time. Therefore, it is important to assess how they integrate with the local economy and to what extent their presence can contribute to the transition to a more dynamic economic environment. Proximity between refugees and hosts might improve the welfare of both groups by increasing opportunities for mutually beneficial economic exchanges. In particular, welfare gains might be generated through the availability of a greater variety of commodities. In this paper we propose a theoretical model that uses the love for variety to frame the possible benefits arising from the interaction between hosts and refugees facilitated by geographical proximity. We complement the conceptual framework with an empirical analysis that makes use of a unique dataset covering around 80% of the refugee population living in Ugandan settlements and the adjoining host households. The empirical results show that proximity between groups increases the food expenditure and the variety of food consumption of both groups. We also found that exposition to inter-group interactions rises the non-food expenditure, and the probability to run a farm and a non-farm enterprise by refugee households, while hosts are not crowding out from production.

     

    Export in Literaturverwaltung   RIS-Format
      BibTeX-Format
    Quelle: Verbundkataloge
    Sprache: Englisch
    Medientyp: Buch (Monographie)
    Format: Online
    Weitere Identifier:
    hdl: 10419/279132
    Schriftenreihe: Discussion paper series / IZA ; no. 16434
    Schlagworte: forced migrations; love of variety; inter-group exchange; distance
    Umfang: 1 Online-Ressource (circa 39 Seiten), Illustrationen