2006–2010

Trade Agreements as Endogenously Incomplete Contracts

Reprint No. 2010:13

Author(s): Henrik Horn, Giovanni Maggi and Robert W. StaigerYear: 2010 Title: American Economic Review Volume (No.): 100 (1) Pages: 394–419
Online article (restrictions may apply)


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. (JEL D86, F13)


Reference:
Horn, Henrik, Giovanni Maggi and Robert W. Staiger (2010), "Trade Agreements as Endogenously Incomplete Contracts". American Economic Review 100(1), 394–419.

Henrik Horn

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henrik.horn@ifn.se

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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