A customs union with the EU would come with significant costs to the UK’s economic, trade and foreign policies. Such an arrangement would also fail, by itself, to eliminate trade friction with the EU. To do so would also require alignment with the Single Market rules for goods. A customs union...

This paper scrutinizes the effects of investor-state dispute settlements (ISDS) and national treatment provisions in a two-period model where foreign investment is subject to domestic regulation and a holdup problem. It shows that ISDS can mitigate the holdup problem and increases aggregate...