We perform development decompositions measuring the effect of trade restrictions on TFP and labor productivity. An economy with two tradable and non-storable intermediate goods, used in the production of a non-tradable final good, is assumed. The solution of the static trade and factor...

A fundamental non-stationarity of infinitely repeated games as usually studied is that the length of the history of play gets longer each period. With private actions (and mixed strategies) or private signals, this introduces a particular difficulty with common solution concepts such as...

Following the seminal work of Mirrlees (REStud, 1971), there has been a large amount of work on how to design an optimal tax system when agents' skills are private information. This literature makes a strong assumption: it assumes that the data generation process for skills in the economy is...