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Lerner Symmetry: A Modern Treatment

By Arnaud Costinot and Iván Werning

American Economic Review: Insights, June 2019

Which policies are protectionist and which ones are not? The Lerner Symmetry Theorem establishes that import tariffs and export taxes are equally protectionist. In this paper we provide a modern treatment of this classical result, highlighting the importa...

Democratic Values and Institutions

By Timothy Besley and Torsten Persson

American Economic Review: Insights, June 2019

This paper builds a model of the two-way interaction between democratic values and institutions to bridge sociological research, focusing on values, with economics research, which studies strategic decisions. Some citizens hold values that make them prote...