We use the Michigan Model of World Production and Trade to assess the sectoral effects of (1) a 25 percent unilateral reduction of military expenditures in the individual NATO countries and (2) a 25 percent multilateral reduction of military expenditures in all of the NATO countries combined....

Empirical labor market studies often do not include controls for family and income structure. Because these variables are significantly correlated with many of the variables commonly included, such as education, estimated coefficients are subject to omitted variable bias. We demonstrate how...

We examine why the gravity equation works and the implications for its use. First, we demonstrate that the gravity equation as a statistical relationship can be generated from a model with incomplete specialization and trade costs. Second, we analyse the predominance of zero bilateral trade...

Chapter 1 of this thesis revisits Reimer (2006), and Trefler and Zhu (2005, 2006) (RTZ) tests of the Vanek proposition in the presence of international differences in production techniques and global production sharing. In this framework, knowing the bilateral details of each country's...

This thesis consists of two essays that explore the importance of information transfers in international trade and the effectiveness of policy measures designed to improve connectivity across export markets. The first essay provides theory and evidence for the role of information as an input to...

Chapter 1 of this thesis examines in theory and empirics how exporters use different modes of transportation to hedge price uncertainty. Ocean transportation in international trade imposes a time lag between the departure and arrival of a shipment. This arrival lag creates a problem for firms...

Purchasing goods from distant locations introduces a significant lag between when a product is shipped and when it arrives. These transit lags are trade barriers for firms facing volatile demand, who must place orders before knowing the resolution of demand uncertainty. We provide a model in...

The first essay develops and tests a monopolistic competition model with a more general, but still tractable, CES preference structure that nests Krugman (1980) and Armington (1969) style models. With limited love of variety the consumer faces a trade-off between buying more varieties or higher...

Whether countries gain comparative advantage from low labor standards, such as child labor use, is an important empirical issue in trade policy. The first essay in this dissertation addresses this question by estimating the effect of child labor stocks on specialization patterns in a...