MEASURING THE UNEQUAL GAINS FROM TRADE.

Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and parameters estimated from a nonhomothetic gravity equation. We find that trade typically favors the poor, who concentrate spending in more traded sectors. JEL Codes: D63, F10, F60. [ABSTRACT FROM AUTHOR]