Traditional explanations for indirect trade through an entrept focus on savings in transport costs and the role of specialized agents in processing and distribution. We provide an alternative perspective based on the potential for entrepts to facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, despite the absence of any legal tax advantage to sending goods via Hong Kong SAR. We present several robustness tests to rule out plausible alternative hypotheses based on existing explanations for entrept trade.

We examine racial preferences in dating. We employ a Speed Dating experiment that allows us to directly observe individual decisions and thus infer whose preferences lead to racial segregation in romantic relationships. Females exhibit stronger racial preferences than males. The richness of our data further allows us to identify many determinants of same-race preferences. Subjects' backgrounds, including the racial composition of the ZIP code where a subject grew up and the prevailing racial attitudes in a subject's state or country of origin, strongly influence same-race preferences. Older subjects and more physically attractive subjects exhibit weaker same-race preferences.