We consider estimation of the economic model of crime exploiting instrumental variables (IV) techniques for panel data. We extend the empirical analysis of Cornwell and Trumbull (1994) and show that their instruments are very weak. We propose an alternative identification strategy based on the...

We study the effects of free trade areas on bilateral trade flows. We review and extend the previous empirical literature by embarking on the modelling of unobserved heterogeneity. We apply our preferred model to the case of the Asean Free Trade Area (AFTA). The estimation results suggest that...