The observation of an increase in the ratio of skilled to unskilled wages in the high-income countries and in some cases in low/middle income countries has led to considerable discussion and indeed controversy as to its cause. Virtually none of the analysis has considered a possible role of...

This quote contains two separate policy suggestions: (1) Trade barriers insulate production and welfare from any adverse responses to costly environmental restrictions. (2) Banning multinationals would insulate production and welfare from any adverse effects of costly environmental restrictions....

International trade policy analysis has tended to focus on the production side of general equilibrium, with policies such as a tariff or carbon tax affecting international and internal income distributions through a Heckscher-Ohlin nexus of factor intensities and factor endowments. Here I move...