Learning by Ruling and Trade Disputes
58 Pages Posted: 11 Sep 2017 Last revised: 18 Jun 2023
Date Written: September 2017
Abstract
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.
Suggested Citation: Suggested Citation
Maggi, Giovanni and Staiger, Robert W., Learning by Ruling and Trade Disputes (September 2017). NBER Working Paper No. w23774, Available at SSRN: https://ssrn.com/abstract=3035127
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