Connecting the (dirty) dots: Current account surplus and polluting production

According to the existing open-economy macroeconomics literature, a current account surplus is associated with a welfare loss only when distortions exist in either savings or investment. We propose a new welfare effect even in the absence of such distortions. In our theory, a trade imbalance − the l...

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Bibliographic Details
Main Authors: Lee, Jungho, WEI, Shang-Jin, XU, Jianhuan
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2023
Subjects:
Online Access:https://ink.library.smu.edu.sg/soe_research/2422
https://ink.library.smu.edu.sg/context/soe_research/article/3421/viewcontent/Trade_cost.pdf
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Institution: Singapore Management University
Language: English