We empirically analyze the formation of international environmental agreements within a political economy framework. We develop a theoretical model of state dependent net benefits of ratification predicting (i) strategic behavior with respect to the timing of ratification and (ii) that ratification per se is not necessarily a stronger signal of support compared to signature. Analyzing the signa...

This paper investigates the relationship between international trade and the quality of economic institutions. We model institutions as fixed costs of entry, in a framework that has two key features. First, preferences over entry costs differ across firms and depend on firm size. Larger firms prefer to set higher costs of entry, in order to reduce competition. Second, these costs are endogenous...

Natural disasters occur in a political space. Although events beyond our control may trigger a disaster, the level of government preparedness and response greatly determines the extent of suffering incurred by the affected population. We use a political economy model of disaster prevention, supported by case studies, that explains why some governments prepare well for disasters and others do no...

The purpose of this article is to analyze the effects of the full admission of China to the global market, a political-economic opening and insertion process which with the admission for the World Trade Organization (WTO) is a key factor that makes it possible to explain the growing trend of China’s commercial positioning in both the markets of developed countries and non traditional export mar...