This paper analyses the wide body of literature that concerns applications of the Ricardian approach to assess the economic effects of climate change on agriculture. Beginning with the original model proposed by Mendelsohn, Nordhaus and Shaw in 1994, the article discusses researchers’ main criticisms of the model and the innovations suggested to overcome its limitations. Finally, the study summ...

Developing and newly industrialized countries that have experienced the sharpest increases in wage inequality are those whose export shares have shifted towards more skill-intensive goods. We argue that this can be explained by technological catch-up. We develop this insight using a model that features both Ricardian and endowments-based comparative advantage. In this model, Southern catch-up c...

This paper develops a small New Keynesian model with capital accumulation and government debt dynamics. The paper discusses the design of simple monetary and fiscal policy rules consistent with determinate equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption, government debt turns into a relevant state variable which needs to be accounted for in the analysis of eq...

This paper develops a Ricardian model with money to study North-South trade that is mediated by the currency of the North. The model shows that an increase in the supply of Northern money results in inflation being “exported” to the South. The increase in the supply of Northern money also has real effects: (1) it transfers real resources from the South to the North, lowers the wage rate in the ...

Abstract This paper studies how frictions in the acquisition of new customers distort allocation activities across heterogeneous producers. We add bilateral search a Ricardian model trade and use French firm-to-firm data to estimate faced by exporters foreign markets. Estimated coefficients display strong degree heterogeneity countries products that correlates with various proxies for informati...

How large are the welfare gains from trade when factors are misallocated due to domestic distortions? In this paper I provide a quantitative answer to this question by incorporating distortions to the allocation of labor across broad sectors into a model of structural change and Ricardian trade. Calibrating the model using 36 years of data for a diverse set of countries I find that (1) gains fr...