This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity heterogeneity. In particular, without making parametric assumptions on firm productivity distribution, this paper derives the optimal degree of reciprocal tariff reductions...

This chapter provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across different decades of the GATT regime. The study first suggests the role of...

The IO literature has typically studied the supply-side factors that determine the price structure of products/services competing in a market. This paper proposes that the demand-side demographics could play an important role in shaping the product price structure. In particular, we document a...