This paper examines the diversification motive for tariffs under trade-related uncertainty when there is incomplete international and domestic risk sharing. In the context of a two-country Ricardian continuum-of-sectors model with shocks to foreign technologies or preferences, tariffs allow a...

Environmental and labour standards have become an important international trade issue. This article examines and ranks alternative trade policy responses available to an importing country with concerns over such standards. While a full import embargo may sometimes be preferable to allowing...

Economic espionage can yield desirable strategic effects as well as cost savings for firms in a spying country. The spying country will typically gain even though counter-espionage operations will often be conducted by target countries. When two producing countries spy on each other, it is...

This article provides a systematic game-theoretic analysis of retaliatory export subsidies where each country's government is driven by political -economy considerations. The model provides a powerful explanation of both the grain wars of the 1980s and the difficulties facing the post-Uruguay...

This paper examines how key product-cycle parameters, such as the ease of new product adoption and the pace of product obsolescence, influence North-South wage inequality and the trade pattern. An innovative feature of the paper is in modeling the interaction between endogenous Northern product...