ON TARIFF PREFERENCES AND DELEGATION DECISIONS IN CUSTOMS UNIONS: A HECKSCHER-OHLIN APPROACH

• Published in: The Economic journal (London) Vol. 112; no. 481; pp. 625 - 648
• Main Author: Syropoulos, Constantinos
• Format: Journal Article
• Language: English
• Published: Oxford UK Blackwell Publishers 01.07.2002; Oxford University Press
• Subjects: Customs unions; Decision making models; Demand curves; Economic theory; Economics; Endowments; GATT; Heckscher-Ohlin theorem; Preferences; Preferential tariffs; Price elasticity; Price elasticity of demand; Studies; Tariff preferences; Tariffs; Terms of trade; Trade; Trade agreements; Trade policy

This paper studies preferences of customs union (CU) members over common external tariff (CET) levels and extends the literature on delegation decisions over trade policy in models with production. In a model with similar CU members, we prove that most-preferred CETs can be ranked with the help of c...