This paper quantifies the welfare impact of unilateral trade liberalization and computes the optimal tariff structure for Costa Rica in the presence of trade-policy-induced international capital flows and foreign capital taxation. For this, an applied general equilibrium model integrating trade,...

The paper uses a calibrated general equilibrium model to quantify the welfare impact of trade liberalization and compute the optimal tariff structure for Costa Rica when trade policy induced foreign direct investment and international capital taxation with credits are present. It shows that...

We investigate the theoretical relationship between wage concentration and international market integration. Access to imported varieties lowers the cost of intermediate inputs (“machines”) used to carry out production tasks, causing workers with different comparative abilities to be sorted...