Read the article “Economists find evidence for famous hypothesis of ‘comparative advantage’” by Peter Dizikes published on MIT News in 2012.
This article discusses a paper by Arnaud Costinot and Dave Donaldson. In your submission, consider answering the following questions:
- What hypothesis do the authors aim to test in this paper?
- To test the hypothesis, what do they measure and using what data?
- What is their main finding?
- What are some caveats of the paper?
Also, note that the first paragraph of the article describes comparative advantage rather poorly. How would you rephrase to describe comparative advantage more accurately?