This paper investigates the relationship between increased free trade and price fluctuations. It ... more This paper investigates the relationship between increased free trade and price fluctuations. It questions why current research has not included a basic tenet of economics that free trade affects prices. Because there is a lack of utility in a cross-sectional analysis and because of the better availability of data, Granger causality is examined in a panel data set to explore the long-term effects increased free trade has on prices and consumer welfare (surplus). The results show that changes in free trade affect countries differently based on income level.
This paper investigates the relationship between increased free trade and price fluctuations. It ... more This paper investigates the relationship between increased free trade and price fluctuations. It questions why current research has not included a basic tenet of economics that free trade affects prices. Because there is a lack of utility in a cross-sectional analysis and because of the better availability of data, Granger causality is examined in a panel data set to explore the long-term effects increased free trade has on prices and consumer welfare (surplus). The results show that changes in free trade affect countries differently based on income level.
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Papers by Joseph Hartman