In view of the deferred start of negotiations for the modernization of the Customs Union between the EU and Turkey (CU-EUT), we look back and analyse the ex post trade consequences of the CU-EUT. Employing up-to-date econometric best practices for regional integration agreements, we quantify...

Carbon tariffs are one prominently discussed climate policy. The proponents stress the carbon tariffs' ability to restore competitiveness, avoid carbon leakage, and reduce world carbon emissions. We analyze the effects of carbon tariffs on trade, welfare, and carbon emissions in a structural...

Unilateral climate policy suffers from carbon leakage, i.e. the (partial) offset of the initial emission reduction by increases in other countries. Different than most typically discussed climate policies, degrowth not only aims at reducing the fossil fuel use in an economy, but rather at a...

Unilateral climate policy suffers from carbon leakage, i.e. the (partial) offset of the initial emission reduction by increases in other countries. Different than most typically discussed climate policies, degrowth not only aims at reducing the fossil fuel use in an economy, but rather at a...

Carbon tariffs are one prominently discussed environmental policy. The proponents stress the carbon tariffs' ability to mitigate the potential negative effect of environmental-friendly production on competitiveness, to avoid carbon leakage and to reduce world carbon emissions. We analyze the...

The Russian invasion of Ukraine in 2022 led to unprecedented sanctions aimed at denying Russia access to critical technologies essential for sustaining its war efforts. This paper examines whether trade sanctions targeting military goods were undermined by evasion, specifically through...

I develop a quantitative model of trade and multinational production that allows a complete range of multinational activities, including selling only in the host country (horizontal FDI), selling only in the country of origin (vertical FDI), and selling to third countries (export platform FDI)....

Online delivery of digital media content is expected to nullify geographical friction. However, we provide evidence that physical distances still matter for sales on digital distribution platforms. Using data from country-level game sales collected from Steam, the world’s largest computer game...