We study the impact of import protection on relationship-specific investments, organizational choice and welfare. We show that a tariff on intermediate inputs can improve social welfare through mitigating hold-up problems. It does so if it discriminates in favor of the investing party, thereby...

This paper investigates how corrupt public officials and private agents adjust to policy reforms that change opportunities for bribery deals to take place. I exploit an exogenously determined tariff liberalization program that altered opportunities to extract bribes through a particular method...

This paper examines the response of industries and firms to changes in trade costs. Several new firm-level models of international trade with heterogeneous firms predict that industry productivity will rise as trade costs fall due to the reallocation of activity across plants within an industry....

This paper investigates how corrupt public officials and firms adjust to policy reforms that change opportunities for bribery deals to take place. I take advantage of an exogenously determined tariff liberalization program that altered opportunities to extract bribes through a particular method...