The share of merchandise output that is internationally traded has significantly increased while tariffs have fallen. However, standard trade models have surprising difficulty linking these two facts. Trade growth slowed in the 1970s as tariffs fell relatively sharply while after the late 1980s...

reduces a similar gap in British FDI returns by nearly half.

competitiveness.

More competitive markets are associated with higher productivity. However, changes in competition complicate productivity measurement since changing mark-ups may shift factor shares. This paper examines productivity measurement in markets with market power and restrictive work rules: rules that...

I develop a theory to explain why workers want restrictive work rules, those that induce wages to be paid for non-productive labor hours, and why competition reduces them. Work rules allow workers to maintain both high levels of employment and wages. They generate a fixed payment that transfers...

U.S. investors abroad receive a higher return on their assets than their counterparts that invest in the United States. I examine the degree to which excluding intangible assets and repatriation taxes from the international transactions accounts can account for this gap. Using a growth...

Trade weighting is a common method of aggregating trade frictions. It will understate changes in these costs when there are non<i>ad valorem</i> trade costs and quality differences. Newly traded goods enter at higher trade costs than previously traded ones. Lower import costs shift trade to lowquality...

Manufacturing and vertical specialization (VS) trade, trade in goods that incorporate imported inputs, have grown rapidly since the 1960s. I argue that declining trade costs are an important explanation for these facts. I present a three stage vertical specialization trade model, with raw...

The Atlas Narodov Mira has been used extensively to investigate the effects of ethnic divisions, but little is known about how it defines ethnicity. Most theories of ethnicity emphasize the tendency of group members to marry within the group (endogamy). This note surveys studies of ethnic...