Template-Type: ReDIF-Article 1.0

Author-Name: Irene Brambilla y Romina Tomé
Author-Workplace-Name: Universidad Nacional de La Plata - CONICET

Author-Name: Irene Brambilla y Romina Tomé
Author-Workplace-Name: Inter-American Development Bank (IADB)

Title: Imports and Welfare: Variety Losses of the Argentine Crisis of 2001-2002


Abstract: The access to a large variety of products is one of the main sources of gains from international trade and globalization. When an economy goes through a crisis, aggregate demand shrinks resulting in fewer product varieties being imported. In this paper we quantify short-run and medium-run welfare losses that resulted from the reduction in the number of imported product varieties during the Argentine crisis of 2001-2002. We find that short-run welfare losses vary widely across products and that medium-run recovery depends on the ability to substitute towards new varieties.



Classification-JEL: F10, F14

Keywords: Gains from trade, Product varieties, Argentine crisis
Journal: Económica

Pages: 45-75
Volume: 60
Year: 2014
Month: January-December
File-URL: https://revistas.unlp.edu.ar/Economica/article/view/5348/4378
File-Format: Application/pdf
Handle: RePEc:akh:journl:592