Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The paper analyzes the importance of credible institutions in the process of trade liberalization. It combines aspects of credible policy announcements with adjustment costs. We show that if industries' profits are subject to adjustment costs, a dynamic link between periods arises that creates constituencies for a non-discretionary trade policy regime. The conditions for a government to select such an institutional solution are derived. Copyright 2000 by Oxford University Press.