Senators from both political parties have expressed concerns over the re- cent Trans-Pacific Partnership trade agreements effects on income inequality in the United States. Are their misgivings well founded? What are the theoretical justifications or refuta- tions for this proposed link between trade openness and income inequality, and what empirical results can be marshaled as evidence for and against your case?
Instructions: In a brief 1000 word essay, write a policy memo answering the question posed below. You answer should explain:
1. What model is best fit to address the policy question,
2. Reasons why the model is appropriate to address the question,
3. How the model can be used to answer the question, and what answer it gives,
4. Any empirical evidence on the predictions of the model that either confirm or refute the models predictions, and
5. Reasons why or conditions under which the assumptions of the model may be inappro- priate for this particular application.
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