While many studies have documented deviations from the Law of One Price in international settings, evidence is scarce on the extent to which consumers take advantage of price differentials and engage in cross border shopping. We use data from 287 Swedish municipalities to estimate how responsive...

This paper examines the theoretical arguments and historical evidence about whether regionalism undermines the multilateral trading system. It first considers how to define multilateralism and then surveys over 60 recent contributions to the literature. It classifies theoretical models by four...

The paper applies a gravity model to 1980-1996 annual non-fuel imports data for 58 countries to quantify the effects of recently created or revamped PTAs on trade. We modify the usual gravity equation to identify separate effects of PTAs on intra-bloc trade, members' total imports and their...