Chapter 4. Globalization, Trade in Middle Products, and Relative Prices1. Introduction; 2. Real GDP, real GDI, and relative prices; 3. Description of the aggregate technology; 4. Estimation results; 5. Accounting for changes in openness, imbalances, and income shares; 6. Productivity; 7. Conclusions; Acknowledgment; Appendix: Description of the data; References; Chapter 5. Fixed Transport Costs and International Trade; 1. Introduction; 2. The general model; 3. The offer curves; 4. The Equilibria; 5. The Ricardian case; 6. Stability and Efficiency; 7. Concluding remarks and extensions |