This article presents a Ricardian model of trade with learning-by-doing to study the effect of barriers to trade in products with low growth potential on the long-run economic growth. The model shows that, when elasticity of demand for the product with a lower learning potential is greater than...

Economists have long suspected that firm-to-firm relationships might increase price rigidity due to the use of explicit or implicit fixed-price contracts. Using transaction-level import data from the U.S. Census, I study the responsiveness of prices to exchange rate changes and show that prices...

This paper provides insights into the determinants of bargaining power and how they affect drug prices. Our data show that drug prices vary across buyers and time periods. We estimate a structural bargaining model where drug suppliers and buyers engage in bilateral bargaining over drug prices....

This paper studies the design of indirect redistributive taxation and of corrective taxation, as well as the formation of equilibrium indirect tax policies via a political process, in the presence of status goods, allowing for the possibility that illegal copies of those goods may be purchased...

Most governments will have to raise additional resources to deal with the aftermath of the corona crisis. This paper argues that excise duties on drinking, smoking, gambling, sugar-sweetened beverages, plastics, fossil fuels, motoring, telecoms and platforms are the preferred instruments. In...

This paper focuses on whether households facing economic scarcity tend to change consumption priorities as measured by the share of spending on necessity goods relative to luxury goods in a large national supermarket chain in Israel for the years 2011-2018. Based on detailed weekly revenue data...

Digital media goods and digital media platforms exhibit cost structures and network effects that imply that price and quantity effects of consumption taxes are qualitatively different compared to what we typically find for physical goods. For instance, in most European countries and US states,...