In this paper show that the Canada-US Free Trade Agreement (CUSFTA) tari¤ preferences have triggered a decline in Canadian external tariffs, explaining a two percentage point reduction in the average tariff between 1989 and 1998. Next, we found that industries which generate the least export...

This paper documents participation of special interest groups in negotiations of the Canada-US Free Trade Agreement. Using data on the tari§ reduction schedules mandated by the agreement, it shows that industries represented by strong lobby groups were faced with more favorable tari§...

In this paper we show that demographic di§erences between countries are a source of comparative advantage in international trade. Since many skills are age-dependent, population aging decreases the relative supply and increases the relative price of skills which depreciate with age. Thus,...

This paper studies the industry-level and aggregate implications of financial development on international trade. I set up a multi-industry general equilibrium model of international trade with heterogeneous firms subject to export entry costs and financial frictions, in which industries differ...

This paper provides a new framework for the derivation and estimation of consumption and equity premium functions. Applying duality in a dynamic context, we show that equity premium and consumption functions can be easily obtained from the indirect utility function. Our new framework, therefore,...

We would like to thank Gordon Tullock and an anonymous referee of this journal for their helpful comments and suggestions.

Are judges concerned with the effect of their decisions on national welfare in the same way as policy-makers do? In this paper we analyze this question by examining the outcomes of intellectual property rights (IPR) litigations between domestic and foreign .rms. We develop a simple model of...

In this paper, we use duality properties to show that the saving function can be derived in a non-expected utility framework, even with fairly general preferences. We propose an econometric framework for estimation of the cross-country aggregate saving function, using a flexible functional form...

The purpose of this paper is to measure some of the economic effects of greater population diversity. Theoretically, the effects of greater diversity depend on trade-offs between dynamic and static efficiency and on the importance of informational networks. In general, the effects are ambiguous...

This paper examines the effects of union contracts on the firm’s capital structure. We consider one-stage and two-stage models, as well as wage and wage/employment contracts. We show that, for all Pareto efficient bargaining solutions, a higher debt reduces the expected tax bill, but increases...