Trade Agreements as Endogenously Incomplete Contracts
|
NBER Working Paper No. 12745
Issued in December 2006
NBER Program(s): ITI
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 agreement and how this depends on the fundamentals of the contracting environment. We argue that taking contracting costs explicitly into account can help explain a number of key features of real trade agreements.
Published: Henrik Horn & Giovanni Maggi & Robert W. Staiger, 2010.
"Trade Agreements as Endogenously Incomplete Contracts,"
American Economic Review,
American Economic Association, vol. 100(1), pages 394-419, March.
This paper is available as PDF (495 K) or via email.
Acknowledgments
Machine-readable bibliographic record -
MARC,
RIS,
BibTeX
|
|
|
About
Support
The research activities of the NBER are funded by grants from federal research agencies, by private foundations, and by generous donations from our corporate associates and from private individuals. The NBER is a non-profit, 501(c)(3) organization. For information on supporting the NBER, please contact:
Mr. Denis Healy, Director of Development
NBER
1050 Massachusetts Avenue
Cambridge, MA 02138-5398
ph: 617-868-3900
email: dhealy@nber.org
Close
