The practice of trade cost measurement faces several challenges related to data quality, methodology and theory; but the major issue is that of data scarcity. Due to these facts both domestic and asymmetric trade costs have been ignored despite being a feature of modern trade models. This paper...

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

Standard trade theory suggests that Free Trade Agreements (FTAs) could disrupt trade between members and non-members. However, the trade diversion effects of FTAs have not been thoroughly examined empirically. Using a novel empirical approach, we confirm that FTAs that entered into force...

Using NAFTA as an illustrating example, I show that heterogeneity in the effects of free trade agreements (FTAs) both within and across agreements is not very well understood. Not only has NAFTA reduced trade frictions significantly more than other FTAs, but each NAFTA member country has enjoyed...

This volume is a collection of papers that apply general equilibrium theory in order to obtain policy relevant insights on topical issues of international trade and migration. The first set of papers focuses on European integration, applying dynamic numerical general equilibrium methods to...

It has been emphasized that international promotion activities such as state visits or the presence of embassies, consulates and export promotion agencies help foster trade when there are search costs and/or uncertainty. In this paper we try to disentangle the differential effect that foreign...