We reexamine the evidence for “border effects” in deviations from the law of one price, using data for consumer prices from Canadian and U.S. cities. The study parallels Engel and Rogers (1996), except that this study uses actual price data rather than price index data. We find evidence of border effects both in the levels of prices and the percentage change in prices. Even accounting for dista...

We document how product quality responds to exchange rate movements and quantify the extent which these changes affect aggregate pass-through into export prices. analyze substantial sudden appreciation of Swiss franc post removal 1.20-CHF-per-euro lower bound in 2015 using data representing a large share universe goods exports from Switzerland. find that firms upgrade their products after appre...

Overview The decision whether and how to adjust poverty thresholds for area differences in prices depends, among other things, on the reasons that prices differ across metropolitan areas and what one believes a threshold ought to measure. 1 If one starts with the premise that a poverty threshold ought to provide the same purchasing power across markets; that is, enable one to buy the same bundl...

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped tariff equivalent estimate to its determinants (substitution elasticity, preference for home good, trade co...

This paper develops a Bertrand price competition model with di erentiated goods in which export subsidies are compared to exchange rate depreciation as di erent government policies for promoting exports. National governments may wish to help domestic rms to expand market shares in pro table areas and might do this through either one of these two tools.Their e ects on equilibrium values are anal...

Competing theories argue, respectively, that more trade reduces, increases, or does not affect interstate military conflict. We offer a new general theory on how trade affects conflict, which encompasses the liberal logic and the neo-Marxist/neo-mercantilist mechanism of asymmetric dependence and offers alternative explanations to the effects predicted by the bargaining and classical realist ap...

‘While participation in a Fairtrade supply chain can improve things for developing country producers, it is by no means a necessary precondition for producers to benefit from export opportunities.’ Labelling is an increasingly popular mechanism for differentiating products on the basis of their production or origin characteristics, reflecting a growing trend towards ethical consumerism – where ...

A number of reasons have motivated our choice of oil, along with its past and expected future price evolution, as the subject in focus for the present book. A fi rst reason is the importance of oil in the world economy. In the early 2010s, the annual production value of this commodity, when measured at international prices, could be assessed at between $3500 and $4000 billion. World oil exports...

pistachio is a major agricultural export commodity in iran. nowadays, it ranks first among iran’s agricultural exports. this paper focuses on the comparative advantage in pistachio production and the export market in iran. a policy analysis matrix (pam) framework and revealed comparative advantage (rca) index are applied to 2000-2004 data to study iranian government policy regarding pistachio p...