We show that the countries of the former Austro-Hungarian monarchy trade significantly more with one another in the … aftermath of the collapse of the Iron Curtain than predicted by a standard gravity model. This trade surplus declines linearly …

We show that the countries of the former Austro-Hungarian monarchy trade significantly more with one another in the … aftermath of the collapse of the Iron Curtain than predicted by a standard gravity model. This trade surplus declines linearly …

running trade deficits. Some people react to such trade deficits with doom and gloom; others cite them as evidence that … beyond our means. In “Trade Deficits Aren’t as Bad as You Think,” George Alessandria offers an alternative view: Trade …

firing restrictions. We explore the extent to which international trade alters this result. When economies trade, labor … market policies in one country spill over to other countries through a change in the terms of trade. This reduces the …

then used to estimate the effect of reducing tariffs on welfare, trade, and export participation. The authors find sizeable … gains to moving to free trade. Contrary to the view that the gains to lowering tariffs are larger in models with export … to trade reform in models with fixed costs and overstate the welfare gains in models without fixed costs. With fixed …

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import … to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate …

The authors examine the source of the large fall and rebound in U.S. trade in the recent recession. While trade fell … downturn, these trade fluctuations were in line with those in previous business cycle fluctuations. The authors argue that the … high volatility of trade is attributed to more severe inventory management considerations of firms involved in …

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import … to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate …

The large, persistent fluctuations in international trade that cannot be explained in standard models by changes in … expenditures and relative prices are often attributed to trade wedges. We show that these trade wedges can reflect the decisions of … inventory management decision can generate trade flows and wedges consistent with the data. Moreover, matching trade flows …