The North American Free Trade Agreement (NAFTA) was signed by President William Jefferson Clinton in 1992. Although NAFTA is a trade and tariff initiative it has profound consequences for labor and the U.S. economy. Since its implementation NAFTA has resulted in the permanent elimination of more...

Products with negative externalities are often subject to regulations that limit competition. The single-product case may suggest that it is irrelevant for aggregate welfare whether output is restricted via corrective taxes or limiting competition. However, when products are differentiated...