-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I …

We study unanticipated tariffs on imports of intermediate goods in a setting with firm-to-firm supply relationships … free trade. Once they are in place, the home government surprises with an input tariff. This can lead to renegotiation with … deterioration in the terms of trade. The welfare implications of a tariff are ambiguous in this second-best setting, but plausible …

frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets …. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral … country's trade partner. Unemployment benefits can alleviate the distortions in a country's labor market in some cases but not …

aggregate export and FDI sales relative to the domestic and foreign market sizes. In particular, it is shown that firm level … heterogeneity is an important determinant of relative export and FDI flows. We use the model to derive testable empirical … predictions on the relative aggregate export and FDI sales in a given country for a given sector based both on relative costs and …

unions to estimate the effect of currency unions on trade using (then-) conventional gravity models. In this paper, we use a … variety of empirical gravity models to estimate the currency union effect on trade and exports, using recent data which … a smaller trade effect than other currency unions; it has a mildly stimulating effect at best. Third and most …

Supply chain disruptions, which have become commonplace, are often associated with globalization and trade. Little is … CES case, a subsidy for diversification achieves the constrained social optimum and dominates a policy that promotes … at home versus abroad may achieve greater welfare than ones that encourage or discourage diversification …

We characterize trade policies that result from political competition when assessments of well-being include both … increased income inequality or heightened racial and ethnic tensions, lead to pronounced changes in trade policy. We analyze the …

tariff or export subsidy is positive. Positions and expected outcomes monotonically approach free trade as party discipline … protectionist bias in majoritarian politics. When trade policy is chosen by the majority delegation and legislators in the minority … have limited means to influence choices, the parties announce trade policies that favor specific factors, and the expected …