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Learning by Ruling and Trade Disputes
Giovanni Maggi
Robert W. Staiger
Over the WTO years, the frequency of disputes and court rulings has trended downwards. Such trends are sometimes interpreted as symptoms of a dispute resolution system in decline. In this paper we propose a theory that can explain these trends as a result of judicial learning; thus according to our theory such trends represent good news, not bad news. We then offer evidence that the predictions of our model are consistent with WTO trade dispute data, and we take a first step towards estimating the strength and scope of court learning.
Giovanni Maggi & Robert W. Staiger, 2017. "Learning by Ruling and Trade Disputes," NBER Working Papers 23774, National Bureau of Economic Research, Inc.
Handle: RePEc:nbr:nberwo:23774
Note: ITI
File URL: http://www.nber.org/papers/w23774.pdf
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D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
NEP-INT-2017-09-24 (International Trade)
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