displacements and wage movements inspecific, allegedly trade-impacted sectors. The procedure involves the estimation of reduced … sensitivity of employment to the domestic price of imports varies significantly across these nine sectors, whereas industry wages … competition.Imports have been responsible for the loss of a large number of jobs in only one industry, and for a significant loss …

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 …

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 …

In this paper, I examine the argument that free trade may be harmful to less developed countries, because such … entrepreneurial class is smaller under free trade than would be first-best optimal in the presence of efficient risk …-sharing institutions such as stock markets. Nonetheless, there are potential gains from trade, and any protectionist policy that increases …

Free trade is not optimal for a small country that faces uncertain terms of trade if some factors are immobile - ex … techniques we demonstrate that optimal policy for this purpose will often have an anti-trade bias. We also show that the usual … preference by economists for factor or product taxes and subsidies over tariffs and export subsidies may not be justified in this …

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 …