policies in developing countries that focus on the reduction of trade taxes with coordinated increase in VAT to cover the …

We study the implications of loss aversion for trade policy determination and show how it allows us to explain a number … of important and puzzling features of trade policy. In particular, we show that if individual preferences exhibit loss … aversion and the coefficient of loss aversion is large enough, there will be an anti-trade bias in trade policy. We also show …

, but particularly in the United States, are modeled to be equivalent to a thickening of trade barriers in international … trade. By estimating a gravity model with a stochastic frontier technique, an effective trade barrier is quantified by â …€œtrade inefficiency,†that is by the difference between potential trade and actual trade; this is done both for country pairs and for a …

This paper examines the issue of sustaining free trade when countries receive imperfect private information about each …€™ protection levels, the punishment scheme to deter deviations from free trade should provide right incentives for the countries to …€™ incentives to deviate from free trade, or if there exists a large enough asymmetry in the transparency of countries’ trade …

We analyze local content requirement (LCR) and tariff in a two-country model of vertical market-structure with …

conventional trade components (lower tariffs and higher market access) and other aspects of the lat- ter broad FTAs, including …Chile put into place broad free trade agreements (FTAs) with its two major trading partners: the EU (effective 2003 … agents. The model is calibrated to the Chilean economy and the actual features of both trade agreements. The reported effects …

How do the trade impacts of a safeguard measure - which is statutorily designed to follow the most-favored-nation (MFN … the trade effects of the 2002 US safeguard on steel imports and comparing this with the impact of other US trade remedies … the excluded products allows us to document the sizable impact on trade of both forms of preferential treatment. We also …

This paper applies an endogenous lobby formation model to explain the extent of trade protection granted to Brazilian … manufacturing industries during the 1988-1994 trade liberalization episode. Using a panel data set covering this period, we find …