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We explore conditions under which trade agreements can provide gains by reducing trade-policy uncertainty. Given the degree of income risk aversion, this is more likely when economies are more open, e...
Trade and Investment under Policy Uncertainty:Theory and Firm Evidence
Investment Trade Uncertainty Policy Agreements
2015/9/22
Using a dynamic, heterogeneous firms model with sunk costs of exporting we show that: (i) investment and entry into export markets is reduced when trade policy is uncertain and (ii) credible preferent...
Policy Uncertainty, Trade and Welfare:Theory and Evidence for China and the U.S.
Policy Uncertainty Trade Welfare China the U.S.
2015/9/22
We examine the impact of policy uncertainty on trade and real income through firms’ export investments in general equilibrium. We quantify the trade policy causes and welfare effects of China’s export...