Trade Agreements as Endogenously Incomplete Contracts
---- Acknowledgements ----
This paper has benefited from the helpful comments of Kyle Bagwell, Pierpaolo Battigalli, Gene Grossman, Elhanan Helpman, Robert Lawrence, Andres Rodriguez-Clare, Johan Stennek and seminar participants at Calgary, CEMFI, Ente Luigi Einaudi, Harvard, Minneapolis Fed, Penn State, Princeton, UBC, UCSD and Yale, as well as participants in an ERWIT conference and in a conference at CREI (Universitat Pompeu Fabra). Horn gratefully acknowledges financial support from the Marianne and Marcus Wallenberg Foundation. Maggi gratefully acknowledges financial support from the NSF (SES-0351586) and thanks the Ente Luigi Einaudi for hospitality during part of this project. Staiger gratefully acknowledges financial support from the NSF (SES-0518802). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.