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New trade models, elusive welfare gains BEHRENS, Kristian KANEMOTO, Yoshitsugu MURATA, Yasusada product diversity cardinalization subutility function new trade models welfare gains from trade https://www.grips.ac.jp/list/jp/facultyinfo/kanemoto_yoshitsugu/ We generalize the formulae for welfare changes by Arkolakis, Costinot, and Rodríguez-Clare (2012) and Melitz and Redding (2014a) to allow for various cardinalizations of the subutility functions for varieties. Despite the same macro restrictions and the same equilibrium allocations, our new formula coincides with the original ones if and only if the number of varieties is invariant to foreign shocks. When product diversity responds to foreign shocks, different cardinalizations generate different welfare changes, thus revealing a fundamental difficulty in quantifying welfare gains implied by new trade models. JEL Classification Codes: F11, F12 経済学 / Economics GRIPS Policy Research Center 2014-11-07 eng technical report AM https://doi.org/10.24545/00001156 https://grips.repo.nii.ac.jp/records/1156 10.24545/00001156 https://ideas.repec.org/p/ngi/dpaper/14-20.html https://ideas.repec.org/p/ngi/dpaper/14-20.html GRIPS Discussion Papers DP14-20 https://grips.repo.nii.ac.jp/record/1156/files/DP14-20.pdf application/pdf 153.2 kB