Economic sanctions are a frequently used tool of foreign policy. Constraining trade flows towards or from the target country is supposed to coerce its government into changing certain policies. However, sanctions constitute an obstacle to trade, thereby affecting flows of all countries,...

This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition set-ups, we (i) dissect welfare losses for sanction-senders and target; (ii)...

This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition set-ups, we (i) dissect welfare losses for sanction-senders and target; (ii)...

Sanctions are meant to coerce political adversaries through economic measures. However, evidence for their effectiveness is scarce. In this paper we assess the impact of sanctions on a democracy - France - by studying the electoral consequences of the sanctions and countersanctions imposed...

Wie würde die deutsche Wirtschaft eine harte wirtschaftliche Abkopplung von China bewältigen? Um dem nachzugehen, simulieren die Autoren mithilfe eines quantitativen Handelsmodels ein Szenario, in dem sich die Weltwirtschaft in drei Blöcke aufspaltet: die G7-Staaten und ihre Verbündeten,...

Countries increasingly form alliances to collectively impose sanctions. However, the resulting impact of such coordination remains unclear. Analyzing the 2014 wave of sanctions against Russia over 400,000 simulations with a quantitative trade model, this report demonstrates that multilateral...

How would the German economy cope with a hard economic decoupling from China? The authors study a scenario where the global economy fragments into three distinct blocs: the G7 economies and their allies, China and her allies, as well as neutral countries. German trade with China would have to be...

Zunehmend setzen Staaten auf Allianzen oder Koalitionen, um gemeinsam Sanktionen gegen ein Drittland zu verhängen. Die Auswirkungen einer solchen Koordination sind jedoch unklar. Dieser Wochenbericht analysiert die Sanktionswelle gegen Russland im Jahr 2014 anhand von 400000 Simulationen mit...

Economic sanctions are a frequent instrument of foreign policy. In a diplomatic conflict, they aim to elicit a change in the policies of foreign governments by damaging their economy. However, sanctions are not costless for the sending economy, where domestic firms involved in business with the...

In November 2015, Turkey's unexpected downing of a Russian military jet in Syria prompted Russia to impose a swift and comprehensive embargo on specific Turkish exports. This study leverages this quasi-natural experiment to estimate both the immediate and longer-term effects of the imposition...