Political Commitment Theory of Trade Agreements

Tang and Wei (JIE, 2009) found that countries which undertook more stringent tariff reductions as part of their accession to the WTO subsequently had higher growth. Explain how these results support or refute the political- commitment theory of trade agreements. The political commitment theory of trade agreements argues that trade agreements arise due to the Read more about Political Commitment Theory of Trade Agreements[…]

Why has wage inequality risen?

Wage inequality has increased in many economies in recent decades. Discuss the three leading hypotheses regarding the causes of this increase. What does the empirical evidence tell us about the quantitative importance of each of these factors? The US economy has almost double since the 1970s, and labour productivity has risen over this period. Yet real wages for Read more about Why has wage inequality risen?[…]