The welfare effects of preferential trading agreements, are most directly linked to changes in trade prices - that is, the terms of trade. The authors use a simple strategic pricing game in segmented markets, to measure the effects of MERCOSUR on the pricing of"non-member"exports to the regional...

The Uruguay Round agreements on agriculture were intended to move member countries toward a fair and market-oriented agricultural trading system. By progressively reducing domestic government support and export subsidies, converting nontariff barriers to tariffs, and reducing barriers to market...

To analyze the main determinants of secondary market prices of Bulgarian Brady Bonds, the authors investigate to what extent fluctuations in domestic fundamentals affect the bonds'secondary market price. They also assess the extent to which external shocks affect the bonds'prices. They estimate...

The authors analyze the U.S. demandfor Bangladeshi imports for products restricted under the Multifiber Arrangement. Because Bangladesh is only a small supplier of these products and Latin American and Asian countries can supply close substitutes, the authors expected a high elasticity of demand...

In the chaotic financial environment of East Asia in 1997-98, daily changes in stock prices of as much as 10 percent became commonplace. The authors analyze what type of news moved the market in those days of extreme market jitters. They find that movements are triggered by both local and...

In 1995, 57 countries depended on three commodities for more than half their exports, reports UNCTAD. And commodities, fuels, grains, and oilseeds are important imports for several countries. The notorious volatility of commodity prices is a major source of instability and uncertainty in...

The hypothesis that the price adjustment to nominal shocks is instantaneous has been part of the monetarist approach explaining the inflationary process in Argentina. But the authors argue that monetary and exchange rate policies have had different effects on relative prices and thus have a...

Cote d'Ivoire has historically taxed cocoa producers. Market reforms over the past 10 years have somewhat succeeded in making domestic and foreign marketing more transparent and competitive. But they have not done much to raise producer prices in real terms or as a share of the FOB (free on...

The rise of index funds over the past 25 years has been a remarkable phenomenon. The traditional rationale for the success of index funds is market efficiency, net of transaction costs. The authors also focus on the role of agency conflicts between fund managers and investors, which are hard to...

The authors examine the welfare effects of increasing household energy prices in Poland. Their main finding is that the policy of subsidizing household energy prices, common in the transition economies of Eastern Europe and the former Soviet Union, is regressive. Such programs do help the poor...