This is one of two papers commissioned by the International Agricultural Trade Research Consortium on various aspects related to the agricultural sector of a prospective North American Free Trade Agreement. The companion paper to this one has been prepared by a working group chaired by Thomas...

When modeling discriminatory trade policies -- such as targeted embargoes, selective quotas, targeted export or import subsidies, or preferential trading agreements -- failure to explicitly include assumptions about arbitraging behavior may yield to misleading results. Quadratic programming...