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 …

This paper investigates the impact of long-run terms-of-trade shocks. Analytically, we show that, if capital goods are … during 1965-89. Favorable terms-of-trade shocks increase investment and (especially government) consumption, but reduce …, but Dutch Disease effects are strikingly absent. Investment, consumption, and nontradable output respond more to a terms-of-trade …

The purpose of this paper is to explore strategic incentives to use trade networks rather than markets and to shed … of networks. We investigate the issues by mainly focusing on the role of matching in a trade network. The existing … conditions under which agents prefer to trade on networks rather than in markets. -- Trade networks ; Repeated games ; Matching …

The purpose of this paper is to explore strategic incentives to use trade networks rather than markets and shed light … trading system. The study states conditions under which agents prefer to trade on networks rather than in markets. -- Repeated … trade ; Moral hazard ; Matching ; Transaction costs ; Networks ; Institutions …

systematically larger along the pre-Islamic trade routes in the Old World. The theory argues that this particular type of geography … economic performance. It suggests that the unequal distribution of land endowments conferred differential gains from trade …, capital accumulation remained low and wealth inequality bounded. Geography and trade shaped the set of economically relevant …

This study explores the interaction between trade and geography in shaping the Islamic economic doctrine and in turn … presence of trade opportunities conferred differential gains from trade across regions, fostering predatory behavior from the … redistribution featuring direct income transfers in return for safe passage to conduct trade. A commitment problem, however, rendered …

This study explores the interaction between trade and geography in shaping the Islamic economic doctrine and in turn … presence of trade opportunities conferred differential gains from trade across regions, fostering predatory behavior from the … redistribution featuring direct income transfers in return for safe passage to conduct trade. A commitment problem, however, rendered …

This study explores the interaction between trade and geography in shaping the Islamic economic doctrine and in turn … presence of trade opportunities conferred differential gains from trade across regions, fostering predatory behavior from the … redistribution featuring direct income transfers in return for safe passage to conduct trade. A commitment problem, however, rendered …

I examine the conditions under which trade can support peaceful coexistence and prosperity when particular social and … allow them to withhold production can improve their gains from trade. I describe the implications for indigenous … contemporary evidence and historical cases of organizations and institutions created to engender trade and support peace drawn from …