Heterogeneous Consumers,Income Inequality and Gains from Trade
According to data,a clear negative correlation exists between income inequality and trade benefits.This study introduces consumer heterogeneity based on the Melitz model to investigate the impact of income inequality on trade benefits at a given per-capita income level.In this model,consumer heterogeneity influences the weighted average elasticity of substitution through the negative correlation between income and price elasticity.Subsequently,this effect propagates through the channel of market competition toughness,ultimately shaping the welfare effects resulting from trade liberalization.Drawing on the theoretical model,this study employs numerical simulation methods to analyze the impact of income inequality.The simulation results reveal the following insights:(1)Trade benefits,when considering consumer heterogeneity,differ significantly from those predicted by the homogeneous consumer model.(2)When export fixed costs are high,higher income inequality weakens the welfare effect arising from reduced variable trade costs.(3)The level of per-capita income plays a hedging role in mitigating the impact of income inequality.In summary,this re-search provides a robust theoretical foundation for China to enhance the welfare effects of high-level economic openness by narrowing income disparities and promoting shared prosperity,thereby advancing high-quality economic develop-ment.
Heterogeneous ConsumersIncome InequalityFirm ProductivityGains from Trade
万方数据
维普
