This book is for people who want to understand modern Trade theory, particularly the Melitz model.
It identifies conditions under which Krugman and Melitz models produce essentially the same results for the welfare effects of Trade liberalization as those obtained from Armington, and conditions under which th.
For Trade Theory specialists, the book produces some significant conclusions.
It lays out Melitz Theory from first principles and relates it to earlier theories of Armington and Krugman.
This book is for people who want to understand modern Trade theory, particularly the Melitz model