This paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the...

Despite the efforts of policymakers and growing usage of front-of-package and on-shelf evaluative nutrition labels, these simplified nutritional information systems have led to only modest improvements in the healthiness of grocery baskets. A key reason may be that consumers prioritize taste...

This paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the...