A Quantitative Trade Model with Unemployment

Executive Summary

1. Introduction

2. the Model
2-1. Consumer
2-2. Firm
2-3. Labor market and production
2-4. International trade

3. Equilibrium
3-1. On the equilibrium
3-2. Changes in equlibrium
3-3. Solution algorithm

4. Conumterfactual Analysis Based on the Model
4-1. A revisit to Caliendo and Parro(2015)
4-2. The welfare effect of China`s tariff reductions

5. Conclusion

References
Appendix