This paper explores the relationship between exchange rate adjustment and trade policy in a simple New Keynesian open … economy macro model. We show that movement in exchange rates have a direct implication for trade policy when governments … choose tariffs endogenously. In particular, we show that the strategic incentive to impose trade restrictions is greater …

This paper develops a model of evolving standards for academic publishing. It is motivated by the increasing tendency …

Building on Eaton and Kortum's (2002) model of Ricardian trade, Alvarez and Lucas (2005) calculate that a small country … representing 1% of the world's GDP experiences a gain of 41% as it goes from autarky to frictionless trade with the rest of the … world. But the gains from openness, which includes not only trade but all the other ways through which countries interact …

both growth and welfare. Growth may increase or decrease, depending upon which sector is promoted by the trade policy. But … an increase in the growth rate is neither necessary nor sufficient for a trade policy to improve welfare. Finally, we …

We develop a framework for studying trade in vertically and horizontally differentiated products. In our model … model to study the pattern of trade between countries that differ in size and income distributions but are otherwise … identical. Trade―which is driven primarily by demand factors―derives from "home market effects" in the presence of transport …