Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …

decades. We argue that pervasive skill biased technological change rather than increased trade with the developing world is …

trade. Utility-maximizing agents opt between careers in specialized production and careers in predation. Three types of … security. Since changes in security have terms of trade effects, some producers may be hurt by enhanced security. We show cases …