A seller can make investments that affect a tradable asset’s future returns. The potential buyer of the asset cannot observe the seller’s investment prior to trade, nor does he receive any signal of it, nor can he verify it in anyway after trade. Despite this severe moral hazard problem, this paper shows the seller will invest with positive probability in equilibrium and that trade will occur w...

Trade benefits consumers and producers, and the effects of trade can operate through product quality: larger markets can have greater investment and therefore higher quality products. We explore this channel in the movie industry, where quality is produced exclusively with sunk costs, these sunk costs are high, and international revenue is important. We develop a structural econometric model of...

Many researchers and authorities in the field of international relations agree on the issue that one of the factors to make relations between and among governments in through traders and exchanging goods among people of different lands, and as human societies develop in different fields, the economic affair and trades of these countries expand and develop, as well.  Thus, they, in turn, have ha...

this paper explores the effects of general and agricultural trade openness on economic freedom and alongside with the quality of institutions, on income and poverty. recent cross-country data for over 200 nations in global regions were used to estimate equations for income, poverty and economic freedom. economic freedom appears to have positive impacts on income levels, which together with good...