Why are trade agreements regional? I address this question in a model of oligopoly featuring product variety. Tariffs have the effect of manipulating a country's terms of trade and shifting profits towards the domestic market at the expense of foreign trade partners. Countries endogenously form...

Kyrkopoulou and Palivos examine the interaction between the informal sector of the economy and undocumented immigration. For this purpose, they use a search and matching model with two sectors, a formal and an informal one. Native workers can work in both sectors, whereas undocumented immigrants...