This volume is a collection of papers that apply general equilibrium theory in order to obtain policy relevant insights on topical issues of international trade and migration. The first set of papers focuses on European integration, applying dynamic numerical general equilibrium methods to...

Trade-diversion effects of free trade agreements (FTAs) have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs divert trade away from non-member countries and even more so from internal trade (domestic sales) in member countries.

This paper develops a method to measure difficulties in market access over a large set of industries and countries (both developing and developed), during the period 1980–2006. We use a micro-founded heterogeneous-consumers model to estimate the impact of national borders on global and...

We compare the impact of distance, a standard proxy for trade costs, on eBay and offline international trade flows. We consider the same set of 62 countries and the same basket of goods for both types of transactions. We find the effect of distance to be on average 65 percent smaller on the eBay...

The opening of Cuba to U.S. tourism would represent a seismic shift in the Caribbean’s tourism industry. This study models the impact of such an opening by estimating a counterfactual that captures the current bilateral restriction on tourism between the two countries. After controlling for...