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Author:Syropoulos, C.
Title:On tariff preferences and delegation decisions in customs unions: a Heckscher-Ohlin approach
Journal:Economic Journal
2002 : JUL, VOL. 112:481, p. 625-648
Index terms:Customs unions
Trade policy
Tariffs
Language:eng
Abstract:The author studies preferences of customs union (CU) members over common external tariff levels and extends the literature on delegation decisions over trade policy in models with production. In a model with similar CU members, he proves that most preferred CETs can be ranked with the help of compensated price elasticities of important demand functions. In Heckscher-Ohlin trade model, the authors show these elasticities depend on inter-country differences in relative factor endowments and inter-sectoral differences in technology.
SCIMA record nr: 235870
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