Trade Policy Uncertainty

Kyle Handley and Nuno Limao, Annual Review of Economics 14, 363-395, August .

Abstract:

Trade policy uncertainty (TPU) has become an important source of economic uncertainty and research. We review the main sources and measures of TPU. We then provide a conceptual framework for modeling TPU and methods for estimating and quantifying its effects. We analyze its role in trade agreements and discuss open questions for future research.