. The gains are a function of the domestic trade share and the long-run elasticity of trade with respect to iceberg trade … long-run elasticity cannot be estimated in one step by relying on tariff variation as shifters of trade costs. We show …, instead, that this object can be recovered by combining two tariff elasticity estimates: the long- and the short-run. Thus …

Electricity transmission has emerged as critical for successfully liberalising power markets. This paper surveys the …