PRELIMINARY AND INCOMPLETE

We study static welfare gains from international trade in a multi-country Ricardian framework. We discipline the parameters of the technologies in each country to be consistent with the observed pattern of trade across countries as well as the observed income per worker in each country. We then calculate the cross-country distribution of static gains from moving to a frictionless trade regime. We show that the welfare gain for a country in the bottom 10th per-centile of income per worker is almost 100 percent and is roughly 17 times that for the U.S. ∗The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. 1