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For anyone who is interested in chasing down the reference to the "Carlos Diaz-Alejandro rule", it comes from "Trade policies and economic development" in International Trade and Finance: Frontiers for Research, Peter Kenen (ed.), 1975.
Here is the quote (p. 97) : "By now any bright graduate student, by choosing his assumptions regarding distortions and policy instruments carefully, can produce a consistent model yielding just about any policy recommendation he favored at the start."
Guillaume Daudin
Trade and prices: an attempted summary
Can we all agree on these? Trade policy works through its effect on the relative prices of goods, not through the price level. Depending on what side of the change in relative prices they find themselves, any specific group of consumers or producers can be made worse off by a move to free tr...
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Sep 28, 2011
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