The core subjects of trade theory are the pattern and volume of trade: which goods are traded by which countries, and … emphasis on carefully connecting theory models to data analyses. The second part of the chapter first considers the theoretical …

We develop a Ricardian model to explore the role of trade in spreading the benefits of" innovation. The theory delivers …

gains from trade, which is consistent with the theory …

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax … policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened … theory. Moreover, some of theory's more subtle prescriptions, such as taxes that involve personal characteristics, asset …

stylized facts that characterize US data, and relates them to recent developments in equilibrium asset pricing theory. Data …