The analysis of economies of specialization at the individual level by Yang & Shi (1992) and Yang & Ng (1993) is combined with the Dixit & Stiglitz (1977) analysis of monopolistic-competitive firms to show that, ignoring administrative costs and indirect effects (such as rent-seeking), even if...

Johnson (1953-54) offered a powerful explanation for the existence of equilibrium tariffs when he showed that governments face incentives to deviate from free trade even in the face of retaliation by their trading partners. Subsequent analyses by Kennan and Riezman (1988) and Syropoulos (2002)...