Working Papers

The Cost of Trade Disruptions at Different Stages of Development (with J. C. Conesa, M. J. Delventhal, and G. Raveendranathan).

The Neoclassical Growth Model and the Labor Share Decline (with Z. L. Mahone and J. Naval).

Optimal Design and Quantitative Evaluation of the Minimum Wage (with Z. L. Mahone).

Technical Appendix

Work in progress

∙ Improving Applied General Equilibrium Models of Trade Liberalization (with T. J. Kehoe, J. Rossbach and K. J. Ruhl).

∙ Calculating the Equilibria of Heterogeneous-Firm Trade Models (with T. J. Kehoe and K. J. Ruhl).


Gains from Trade with Variable Trade Elasticities (with W. J. Brooks), International Economic Review, vol. 60(4), November 2019, 1619-1646.

IDEAS linkWe derive the "ACR equation" with non-homothetic preferences (now the trade elasticity is a function rather than a constant). Welfare gains are about 25% larger than what usually predicted.

Trade Liberalization and Firm Productivity: Estimation Methods Matter (with J. M. Kealey and C. Sosa-Padilla), Economic Inquiry, vol. 57(3), July 2019, 1272-1283.

IDEAS linkTrade liberalization does not increase firm productivity if one uses new estimation methods, like GNR.

The Curious Incident of Luxury Imports during the Top-Income Surge (with S. Houle and M. R. Veall), Economics Bulletin, vol. 39(2), June 2019, 1479-1487.

IDEAS linkAlthough the top 1% are becoming richer lately (more so in anglo countries), there is no increase in imports of luxury goods.

The Canadian Productivity Stagnation, 2002-2014 (with J. C. Conesa), Canadian Journal of Economics, vol. 52(2), May 2019, 561-583.

Technical Appendix and Excel file with the data.IDEAS linkCanadian TFP has barely grown between 2002 and 2014. The foreign sector seems to be playing a role (which is weird, because the national accounts were constructed so that it wouldn't).

Capital Accumulation and the Welfare Gains from Trade (with W. J. Brooks), Economic Theory, vol. 66(2), August 2018, 491-523.

IDEAS linkWe derive the "ACR equation" in dynamic worlds with factor accumulation. The tight link between import intensity and gains from trade breaks along the transition path.

Quantitative Trade Models: Developments and Challenges (with T. J. Kehoe and J. Rossbach), Annual Review of Economics, vol. 9, August 2017, 295-325.

Link to the Minneapolis Fed Research Staff Report 537. Link to NBER Working Paper 22706.IDEAS linkApplied General Equilibrium (AGE) models, the workhorse tool used by practitioners to assess the impact of trade reforms, fails to predict how different sectors are affected by trade reforms. We show that information regarding least-traded-products has much more predictive power.

Fiscal Discipline and Defaults (with G. Fernandez de Cordoba and J. L. Torres), Review of Economic Dynamics, vol. 24, March 2017, 1-13.

IDEAS linkEven if the Greek government had the German government structure when the Great Recession hit, it would have still defaulted. To avoid a government default, countries should have a small debt level (for instance, Maastrich's 60% avoids the default).

The Opportunity Costs of Entrepreneurs in International Trade (with T. J. Kehoe and K. J. Ruhl), Economics Letters, vol. 146, September 2016, 1-3.

Link to the Minneapolis Fed Research Staff Report 533. Link to NBER Working Paper 22514.IDEAS linkTrade models with exogenous firms has the same aggregate outcomes as the span-of-control model. Very useful to build trade models with inequality.

Policy Distortions and Aggregate Productivity: the Role of Idiosyncratic Shocks (with J. M. Da-Rocha), The B.E. Journal of Macroeconomics, 11(1), Topics, 35, 2011.

IDEAS linkIf TFP distortions are measured using a model without idiosyncratic plant shocks, distortions are overestimated.

In Spanish

Eficiencia y Equilibrio en un Modelo de Formación de Derechos de Propiedad (with J. M. Da-Rocha and J. Sempere), El Trimestre Económico, vol. LXXXI (3), núm. 323, julio-septiembre, 2014, 579-593.

IDEAS link

Not peer-reviewed

Improving the Analysis of Trade Policy (with T. J. Kehoe and J. Rossbach), Federal Reserve Bank of Minneapolis Economic Policy Paper, 18-1, January 2018.

IDEAS link