Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires … the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs … specification used. This paper shows that the specification of trade costs matters. Estimations of a NEG wage equation for a sample …

between enemies versus trade between friends to provide some evidence that is consistent with the theory …We analyze how trade openness matters for interstate conflict over productive resources. Our analysis features a terms-of-trade … channel that makes security policies trade-regime dependent. Specifically, trade between two adversaries reduces each one …

international trade and can be destructive; however, once a winner is declared, arming is unnecessary in future periods. By contrast …, a peaceful resolution avoids destruction and supports mutually advantageous trade; yet, settlements must be renegotiated … initial distribution of resource endowments, greater gains from trade can reduce arming and pacify international tensions …

-adjustment effects to trade-policy changes. Instead, we point to a series of advantages of using consecutive-year data recognizing …-biased effect estimates due to the distribution of trade-policy events during an event window as well as due to anticipation (pre …

linkages, trade in intermediate goods and sectoral heterogeneity in production. We use our model to quantify the welfare effect … of the disruption in production that started in China and then quickly spread across the world. We find that the COVID-19 … shock has a considerable impact on most economies in the world, especially when a share of the labor force is quarantined …

Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has … general-equilibrium system. Next, we point out some anomalies with the theory: mounting evidence against constant trade … featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade …

We estimate a three-variate VAR using proxies of global financial uncertainty, the global financial cycle, and world … outbreak. We predict the cumulative loss in world output one year after the uncertainty shock due to Covid-19 to be about 14% …

Societies see growing support for populist politicians who advocate an end to globalization. Our behavioral economics … model links impatience to voters' appraisals of an income shock due to globalization that is associated with short-run costs … and delayed gains. The model shows that impatient individuals may reject further globalization if they are subject to …

the trade literature and the international real business cycle literature. The same theory-motivated estimating equation … for time-interval-varying depreciation-cum-adjustment. A time-varying trade elasticity in the structural gravity model is … implied. Our methods explain the ‘international elasticity puzzle,’ the discrepancy between trade elasticity estimates from …