Horn, Henrik; Maggi, Giovanni; Staiger, Robert W. - In: American Economic Review 100 (2010) 1, pp. 394-419
We propose a model of trade agreements in which contracting is costly, and as a consequence the optimal agreement may … be incomplete. In spite of its simplicity, the model yields rich predictions on the structure of the optimal trade … explicitly into account can help explain a number of key features of real trade agreements. (JEL D86, F13) …
