The Journal of The Journal of Economic Perspectives Economic Perspectives The Journal of Spring 2018, Volume 32, Number 2 Economic Perspectives Symposia Does the US Really Gain from Trade? Arnaud Costinot and Andrés Rodríguez-Clare, “The US Gains From Trade: Valuation Using the Demand for Foreign Factor Services” Robert C. Feenstra, “Alternative Sources of the Gains from International Trade: Variety, Creative Destruction, and Markups” Teresa C. Fort, Justin R. Pierce, and Peter K. Schott, “New Perspectives on the Decline of US Manufacturing Employment” Dani Rodrik, “What Do Trade Agreements Really Do?” A journal of the Risk in Economics and Psychology American Economic Association Ted O’Donoghue and Jason Somerville, “Modeling Risk Aversion in Economics” Thomas Dohmen, Armin Falk, David Huffman, and Uwe Sunde, “On the Relationship 32, Number 2 Spring 2018 Volume between Cognitive Ability and Risk Preference” Hannah Schildberg-Hörisch, “Are Risk Preferences Stable?” Rui Mata, Renato Frey, David Richter, Jürgen Schupp, and Ralph Hertwig, “Risk Preference: A View from Psychology” Articles Matthew Weinzierl, “Space, the Final Economic Frontier” Daron Acemoglu, “Dave Donaldson: Winner of the 2017 Clark Medal” Features Bruce Elmslie, “Retrospectives: Adam Smith’s Discovery of Trade Gravity” Recommendations for Further Reading Spring 2018 The American Economic Association The Journal of Correspondence relating to advertising, busi- Founded in 1885 ness matters, permission to quote, or change Economic Perspectives of address should be sent to the AEA business EXECUTIVE COMMITTEE office: [email protected]. 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FISER POSTMASTER: Send address changes to the Journal of Economic Perspectives, 2014 Broadway, Suite 305, Convention Manager Nashville, TN 37203. Printed in the U.S.A. GWYN LOFTIS The Journal of Economic Perspectives Contents Volume 32 • Number 2 • Spring 2018 Symposia Does the US Really Gain from Trade? Arnaud Costinot and Andrés Rodríguez-Clare, “The US Gains From Trade: Valuation Using the Demand for Foreign Factor Services” . 3 Robert C . Feenstra, “Alternative Sources of the Gains from International Trade: Variety, Creative Destruction, and Markups” . 25 Teresa C . Fort, Justin R . Pierce, and Peter K . Schott, “New Perspectives on the Decline of US Manufacturing Employment” . 47 Dani Rodrik, “What Do Trade Agreements Really Do?” . 73 Risk in Economics and Psychology Ted O’Donoghue and Jason Somerville, “Modeling Risk Aversion in Economics” . 91 Thomas Dohmen, Armin Falk, David Huffman, and Uwe Sunde, “On the Relationship between Cognitive Ability and Risk Preference” . 115 Hannah Schildberg-Hörisch, “Are Risk Preferences Stable?” . 135 Rui Mata, Renato Frey, David Richter, Jürgen Schupp, and Ralph Hertwig, “Risk Preference: A View from Psychology” . 155 Articles Matthew Weinzierl, “Space, the Final Economic Frontier” . 173 Daron Acemoglu, “Dave Donaldson: Winner of the 2017 Clark Medal” . 193 Features Bruce Elmslie, “Retrospectives: Adam Smith’s Discovery of Trade Gravity” . 209 Timothy Taylor, “Recommendations for Further Reading” . 223 “Do You Use JEP Articles in Your Classroom? One More Chance to Share!” . 231 Statement of Purpose The Journal of Economic Perspectives attempts to fill a gap between the general interest press and most other academic economics journals . The journal aims to publish articles that will serve several goals: to synthesize and integrate lessons learned from active lines of economic research; to provide economic analysis of public policy issues; to encourage cross-fertilization of ideas among the fields of economics; to offer readers an accessible source for state-of-the-art economic thinking; to suggest directions for future research; to provide insights and read- ings for classroom use; and to address issues relating to the economics profession . Articles appearing in the journal are normally solicited by the editors and associate editors . Proposals for topics and authors should be directed to the journal office, at the address inside the front cover . Policy on Data Availability It is the policy of the Journal of Economic Perspectives to publish papers only if the data used in the analysis are clearly and precisely documented and are readily available to any researcher for purposes of replication . Details of the computations