We define low-latency activity as strategies that respond to market events in the millisecond environment, the hallmark of proprietary trading by high-frequency trading firms. We propose a new measure of low-latency activity that can be constructed from publicly-available NASDAQ data to...

Although economists have long been aware of Jensen's inequality, many econometric applications have neglected an important implication of it: estimating economic relationships in logarithms can lead to significant biases in the presence of heteroskedasticity. This paper explains why this problem...

Canada's trade diversification drive confronts daunting challenges given that economic geography places it deep in the gravity well of the United States while its main diversification opportunities require partnership with the US' chief geostrategic rival, China. In this note, I sketch out how...

We analyze a two-country model of trade in both legitimate and counterfeit products. Domestic firms own trademarks and establish reputations for delivering high-quality products in a steady-state equilibrium. Foreign suppliers export legitimate low-quality merchandise and counterfeits of...

"Populism and Trade traces the role of populist trade policy in the increase of global protectionism and the erosion of international trade institutions. Populist anti-trade rhetoric played a major part in U.S. President Donald Trump's 2016 election campaign, in which he portrayed current trade...