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We examine how trade sanctions can be imposed effectively in a trading network. We focus on three factors that affect trade sanctions: a country’s endowment, distance between trading countries, and connectivity in the network. Our models explain several empirical observations: (i) sanctions...
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Communal violence requires a prior existence of radicalism. The chapter shows that the degree of extremism of one group can increase or decrease in response to that of the other. Lootable wealth unambiguously raises radicalism. It is not the absolute level of income but the difference between...
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The recent proliferation of free trade agreements (FTAs) has resulted in an increasingly complex network of preferential trading relationships. The economics literature has generally examined the formation of FTAs as a function of the participating countries' economic characteristics alone. In...
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