Asset trading resolves coordination problems in most currently existing models of coordination failure. We argue that a principal limitation of these models is their ignoring idiosyncratic and aggregate uncertainty in investment returns. We introduce such uncertainty in a standard model of...

This paper discusses the trade flow effects outside the EEC following the creation of the latter. First, it focuses on the external effects of European integration on US trade specifically, and continue after that, more in general, with the induces integration effects on the trade among excluded...