EconPapers    
Economics at your fingertips  
 

Breach, Remedies and Dispute Settlement in Trade Agreements

Giovanni Maggi and Robert Staiger ()

No 1735, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We provide a simple but novel model of trade agreements that highlights the role of transaction costs, renegotiation and dispute settlement. The model allows us to characterize the appropriate remedy for breach and whether the agreement should be structured as a system of "property rights" or "liability rules." We then study how the optimal rules depend on the underlying economic and contracting environment. Our model also delivers predictions about the outcome of trade disputes, and in particular about the propensity of countries to settle early versus "fighting it out."

Keywords: International trade agreements; Breach remedies; Dispute settlementLength: 52 pages (search for similar items in EconPapers)
JEL-codes: D02 D86 F13 K12 K33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2009-10
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Quarterly Journal of Economics (February 2011) 126(1): 475-515

Downloads: (external link)
http://cowles.yale.edu/sites/default/files/files/pub/d17/d1735.pdf (application/pdf)

Related works:
Working Paper: Breach, Remedies and Dispute Settlement in Trade Agreements (2009) Downloads
Working Paper: Breach, Remedies and Dispute Settlement in Trade Agreements (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwl:cwldpp:1735

Ordering information: This working paper can be ordered from
Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA
The price is None.

Access Statistics for this paper

More papers in Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University Yale University, Box 208281, New Haven, CT 06520-8281 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Matthew Regan ().

 
Page updated 2019-11-17
Handle: RePEc:cwl:cwldpp:1735