Estimating Disparity in Welfare Gains from Trade between Firm Owners and Workers
2016/11/29
研討會日期 : 2016-11-29
時間 : 14:30
主講人 : Dr. Ching-Mu Chen
主持人 : Professor Meng-Yu Liang
地點 : Conference Room B110
演講者簡介 : Dr. Chen received his Ph.D. in Geography from National Taiwan University in 2010. He is currently a Postdoctoral Fellows at the Institute of Economics, Academia Sinica. His research fields are International Economics, Economic Geography, and Geographic Information Systems.
演講摘要 : This study identifies and quantifies the disparity in welfare gains from trade between firm owners and workers in a multi-country model of monopolistic competition under a demand system of constant elasticity of substitution (CES). An agent decides to start up her own firm or to be employed as a worker according to her level of innate capability, which determines the productivity of her potential launched firm. Although keeping this model isomorphic to Melitz’s heterogeneous firm model in terms of the aggregate welfare gains from trade, we are able to to examine the welfare gains for firm owners and workers, respectively. We construct the expenditure data of the United States and Taiwan and show that this gap in welfare gains from trade between firm owners and workers increases over time since trade is more and more open. Taiwan enjoys higher welfare gains from trade and features higher disparity in this welfare growth between workers and firm owners due to its lower domestic consumption share.
