Bandyopadhyay, Subhayu; Lahiri, Sajal; Roy, Suryadipta - Federal Reserve Bank of St. Louis - 2008
We present a three-nation model, where two of the nations are members of a Customs Union (CU) and maintain a common external tariff (CET) on the third (non-member) nation. The producing lobby is assumed to be union-wide and lobbies both governments to influence the CET. The CET is determined...