Levinson, Arik; Taylor, M. Scott - In: International Economic Review 49 (2008) 1, pp. 223-254
We use theory and empirics to examine the effect of environmental regulations on trade flows. A simple model demonstrates how unobserved heterogeneity, endogeneity, and aggregation issues bias standard measurements of this relationship. A reduced-form estimate of the model, using data on U.S....