One consequence of tariff evasion is that a country’s average statutory import tariff rate deviates from the average applied tariff rate. We deliver an approach to estimate the average evasion rate in multi-country general equilibrium. We find evidence of significant average tariff evasion...

This paper estimates the impact of time zone differences between trading locations on trade costs and trade in general equilibrium. Using homogeneous bilateral trade data between US states and Canadian provinces, time zone differences are found to reduce bilateral trade by 11% on average, which...

Does higher income cause democracy? Accounting for the dynamic nature and high persistence of income and democracy, we find a statistically significant positive relation between income and democracy for a postwar period sample of up to 150 countries. Our results are robust across different...

We propose to test for spatial correlation of the disturbances using estimated residuals of the within estimator. We derive asymptotic properties of the test and present simulation evidence to show that it also works well in finite samples.

This paper examines the small-sample performance of spatial HAC (SHAC) estimators of the standard errors on parameters. We find that, in small to moderately-sized datasets, the use of HAC estimators may be recommended only with a relatively large degree of cross-sectional interdependence.

This paper sheds light on the distribution of profit and personal income tax elasticities of headquarters location across 13,074 firms in 68 countries over 1999–2012. Results suggest high variability in elasticities, which is overlooked in virtually all earlier work on the matter.

Gravity models of international trade have been frequently applied to estimate the impact of common (official or spoken) language on bilateral trade. This study provides a meta-analysis based on 701 language effects collected from 81 academic articles. On average, a common (official or spoken)...