environments in which markets are complete or incomplete, and it can be used for models of any dimension. Moreover, the …

advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed …The paper provides a general-equilibrium model where incomplete international financial markets lead to insufficient … industrial specialization and low international trade. As international portfolio diversification is limited and productivity is …

and intranational data to evaluate the linkages between trade in goods, trade in financial assets, specialization and … important, as both trade and financial openness have a direct and an indirect effect on cycle synchronization. (ii) A variety of … reflection of intra-industry trade, and of openness to goods and assets trade. (iv) The estimated role of trade is in line with …

complementarity between the price of food in international markets and trade policy. Specifically, unilateral actions give rise to a …This paper studies the relationship between trade policy and food prices. We show that, when individuals are loss … averse, governments may use trade policy to shield the domestic economy from large food price shocks. This creates a …