We explore the political economy of trade and migration policies in several models of international trade. We show that …, which induces a Pareto improvement for the global economy …

a simple open-economy model. The critical point is that income taxation induces a rich-poor/elite-workers political …, changes in trade policy are associated with political transitions. Coups (democratizations) open up the economy if and only if …

the lack of fiscal capacity in Latin American countries. Instead, we develop a simple political economy game where the …