Vaal, Albert de; Stibora, Joachim - Institut for Miljø og Erhvervsøkonomi, Syddansk … - 2006
We study the effects of preferential trade agreements (PTA) in a model where the income matters for consumption patterns. We develop a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest)...