Our Seminars & Workshops
Seminars
Workshops
Economic History Seminar - Stephan Heblich (Toronto)
Title: The Distributional Consequences of Trade: Evidence from the Grain Invasion (with Stephen Redding and Yanos Zylberberg).
Here is the abstract:
We provide new evidence on the income distributional consequences of trade using the
New World Grain Invasion in the 19th Century and variation in agroclimatic suitability for
wheat across locations within England and Wales. We show that this large-scale agricultural
trade shock led to structural transformation away from agriculture and a redistribution of
population from rural to urban areas. We develop a quantitative spatial model to rationalize
our empirical findings and evaluate the aggregate implications of this international trade
shock. We use our model to undertake counterfactuals for the Grain invasion, holding constant
other exogenous determinants of economic activity. We find modest aggregate welfare
gains combined with much larger income distributional effects, with geography an important
dimension along which these income distributional effects occur.