We examine the net economic benefits and government revenue implications for Chile of: (1) forming a free trade area with MERCOSUR; (2) forming a free trade area with NAFTA; and (3) reducing its external tariff multilaterally and unilaterally. We show tha

In the supply of public goods, far less free riding actually occurs than traditional theory predicts. As one explanation, the social composition function, which aggregates individual contributions into an available social total, may not always take the standard summation form. Theoretical...

We evaluate two competing hypotheses that try to account for robust violations of the predictions of game theory in Ultimatum bargaining experiments. One popular hypothesis is that the subjects are motivated by considerations of fairness that are not modeled by traditional theory. The...

The effects of the Uruguay Round are quantified using a numerical general equilibrium model which incorporates increasing returns to scale, twenty-four regions, twenty-two commodities, and steady state growth effects. The authors conclude that the aggregate welfare gains from the Round are in...

The theoretical literature on the search behavior of workers and consumers typically considers three search strategies. These strategies are characterized by alternative assumptions about the temporal and atemporal intensity of search. The first strategy is an atemporally intensive...

Recent events have caused a reexamination of the role of programmed traders and futures markets in generating destabilizing price movements. Laboratory experiments provide an ideal environment to isolate their effects on behavior. In a new series of experiments, the author finds that program...