This paper examines various implications of Preferential Trade Agreements (PTAs), namely Customs Unions (CUs) and Free Trade Areas (FTAs), in the context of a multi-country general equilibrium model based on comparative advantage considerations. We calibrate the model to represent countries with...

There has been growing debate about whether bilateral trade agreements are damaging multilateral efforts to eliminate barriers to international trade. This paper develops a model in which trading blocs always charge optimal tariffs and make trade agreements based on strategic considerations. We...

This paper develops a general equilibrium model to quantitatively explain high labor share, low productivity and small farm size in agriculture in low income countries. The model features individual heterogeneity in skill that is augmentable over time and endogenous occupation choice. Calibrated...

This paper quantitatively explains high labor share, low productivity and small farm size in agriculture of low income countries. I develop a variation of Lucas' span-of-control model. Specifically, I allow skill to grow over time as a result of optimal investment in a two-sector OLG model. The...

This paper addresses the question why agricultural productivity is so low in poor countries. World Census of Agriculture reveals that agricultural production is of much smaller scale in developing countries. I construct a two-sector OLG model where agricultural production is carried out by...

This paper addresses the question why agricultural productivity is so low in poor countries. World Census of Agriculture reveals that agricultural production is of much smaller scale in developing countries. I construct a two-sector OLG model where agricultural production is carried out by...

Low labor productivity and small scale are key features of agriculture in poor nations. This paper assesses quantitatively the role of self selection and skill investment of farmers in accounting for these observations. I construct a two-sector overlapping generation model featuring individual...

Low labor productivity and small scale are key features of agriculture in poor nations. This paper assesses quantitatively the role of self selection and skill investment of farmers in accounting for these observations. I construct a two-sector overlapping generation model featuring individual...

Cross-country differences in agricultural productivity dwarf those in the aggregate. This paper presents a theory in which low aggregate productivity distorts skill formation of farmers. A model in the style of Lucas (1978) is extended to allow skill accumulation. Differences in skill magnify...

Cross-country differences in agricultural productivity dwarf those in the aggregate. This paper presents a theory in which low aggregate productivity distorts skill formation of farmers. A model in the style of Lucas (1978) is extended to allow skill accumulation. Differences in skill magnify...