DatasetThe excel file dataset presents all the data used in the paper. It contains data on gdp, bilateral trade, current account and trade balance by country. dataset Data and Gauss program used for counterfactual exercises  Data: The text file trade_04 contains the bilateral trade data used as an input in the program. Columns represent importers and rows represent exporters. The last row and column is the rest of the world (ROW).  trade_04 The text file catb_04 contains current account and trade balance data used to run the program. The first column has the current account data and the second column has the trade balance data. The last row contains world's total. catb_04 The text file gdp_04 contains gdp data used to run the program. The last row is rest of the world (ROW). gdp_04 Program: File deficit9 contains the program that generates the equilibrium variables and counterfactual excercises described in the paper.  deficit9.prg This file briefly explains the Alvarez-Lucas algorithm to get the equilibrium wages and prices in the model.  Alvarez-Lucas algorithm Data and MATLAB program used for counterfactual exercises Data: The matlab file trade_04 contains the bilateral trade data used as an input in the program. Columns represent importers and rows represent exporters. The last row and column is the rest of the world (ROW). trade_04 The matlab file catb_04 contains current account and trade balance data used to run the program. The first column has the current account data and the second column has the trade balance data. The last row contains world's total. catb_04 The matlab file gdp_04 contains gdp data used to run the program. The last row is rest of the world (ROW). gdp_04 Program: The matlab file dek contains the program that generates the equilibrium variables and counterfactual excercises described in the paper. It displays tables 1-4. dek The readme file readmealgorithm briefly explains the Alvarez-Lucas algorithm to get the equilibrium wages and prices in the model.  readmealgorithm