AbstractThis paper uses computational techniques to assess whether or not various propositions that have been advanced as plausible in the literature on regional trade agreements may actually hold. The idea is to make probabilistic statements as to whether propositions of interest might hold,...

The following sections are included:Balance of tradeBarter terms of tradeCES functionComparative advantageContinuum of goodsCurrency areaDiversification coneDUP activityDutch diseaseEdgeworth-Bowley boxFactoral terms of tradeFragmentationGrexitImmiserizing growthIncome terms of tradeLaw of...

AbstractIn this paper we develop a three-country-three-good model of customs unions. The main result is that a sufficient condition for two countries to benefit from forming a customs union is that they are similar in the sense that their mutual trade is small. This result is obtained by...

AbstractThis paper investigates the design of trade policies in an uncertain world. Governments in each of two countries select between direct quantity controls and subsidies in an attempt to shift profits in favour of domestic, imperfectly competitive firms. The equilibrium of this bilateral...

AbstractThe following sections are included: IntroductionTariffs in a Non-Cooperative FrameworkTariffs in a Cooperative Framework: The Negotiation SetTariffs in a Cooperative Framework: The SolutionConclusionReferences

AbstractWe construct a model of customs unions in. which countries charge optimal tariffs. Customs unions internalize the externality that exists whenever two countries import the same good. Also, customs unions make several countries into one large unit with more market power. Big customs...

AbstractThis paper reports the first experiments designed to explore the behavior of economies with prominent features of international finance. Two "countries," each with its own currency, were created. International trade could take place only through the operation of markets for currency. The...

The following sections are included:A–Z0–9

AbstractWe analyze voter preferences for tariffs and production subsidies. The distribution of tax revenues argument shows that voters with high direct tax burdens prefer tariffs to subsidies. The uncertainty argument demonstrates that if actual tariff and subsidy rates are chosen from the set...

AbstractThis paper examines the role of external shocks in explaining macroeconomic fluctuations in African countries. We construct a quantitative, stochastic, dynamic, multi-sector equilibrium model of a small open economy calibrated to represent a "typical" African country. External shocks...