How Important Is the New Goods Margin in International Trade?
Monday, 22 March 2010, 11:30pm to 1:30pm
Professor Tim Kehoe
Lecture Theatre 3, Ground floor, Rutherford House.
The School of Economics and Finance are pleased to announce that the next SEF Seminar for 2010 will be held on MONDAY 22 March, at 11.30-1.30pm in RHLT3. All Welcome.
Guest speaker and presenter:
Professor Timothy J. Kehoe
University of Minnesota,
Federal Reserve Bank of Minneapolis,
and National Bureau of Economic Research, USA
Professor Timothy (Tim) Kehoe received his PhD from Yale University. He teaches in the areas of general equilibrium theory, international trade and public finance. Professor Kehoe’s current research includes intertemporal general equilibrium theory and applied general equilibrium modelling. Professor Kehoe is a Distinguished McKnight Professor and currently with the Department of Economics at University of Minnesota, USA.
(with Kim J. Ruhl - Stern School of Business, New York University)
ABSTRACT
We propose a methodology for studying changes in bilateral trade due to countries exporting goods that they did not export previously or exported only in small quantities. Applying this methodology to country pairs that undergo trade liberalization and to pairs in which one of the countries undergoes significant structural transformation, we find large increases on this extensive - or new goods - margin. Looking at country pairs with no major trade policy change or structural change, however, we find little or no increases on the extensive margin. Studying time series on trade by commodity, we find that data from before 1988 and 1989, when most major trading countries moved to the Harmonized System, are not compatible with data from afterward.
Note the different time to usual seminars: 11.30 - 1.30pm.