Dear colleagues,

The Department of Economics cordially invites you to the WU Economics Research Seminar on Wednesday, November 20^th, with

Joschka Wanner

(University of Würzburg)

on

"New Trade Models, Same Old Emissions?"

Abstract: This paper investigates the role of firm heterogeneity in environmentally extended new trade models, contrasting Eaton-Kortum and Melitz models to Armington and Krugman models. We show that when emissions per sales are constant across firms – a standard assumption in the literature – all four models predict identical emission responses. However, when emissions per quantity are constant across firms, this equivalence breaks. We propose a generalized framework that nests both assumptions. Calibrating the model with multiple industries and estimating the key elasticity between emission intensity and productivity using German firm-level data, we find that firm heterogeneity considerably raises emissions from trade liberalization.

Date: Wednesday, November 20^th

Time: 4.30 to 6 pm (CET)

Location: building D1, first floor, room D1.1.078

With best regards,

Harald Oberhofer

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Univ.-Prof. Dr. Harald Oberhofer

Department of Economics 

WU Vienna University of Economics and Business

Phone: +43/1/31336-4984

Email: harald.oberhofer@wu.ac.at

https://www.wu.ac.at/en/economics/people/oberhofer-h

Austrian Institute of Economic Research (WIFO)

Phone: +43/1/7982601-468

Email: harald.oberhofer@wifo.ac.at

http://www.wifo.ac.at/harald_oberhofer