Free‐Trade Areas and Welfare: An Equilibrium Analysis
نویسندگان
چکیده
منابع مشابه
Free-Trade Areas and Welfare: An Equilibrium Analysis
This paper examines the welfare effects of the formation of a free-trade area (a set of countries which abolish tariffs among member countries but let individual countries to set external tariffs). If a representative consumer has love-of-variety preferences, the welfare function exhibits supermodularity in external tariffs: when a country is constrained to charge lower tariffs on imports of so...
متن کامل1 Free - Trade Areas and Welfare : An Equilibrium Analysis
This paper examines the welfare effects of the formation of a free-trade area (a set of countries that abolish tariffs among member countries but let individual member countries to set external tariffs). If a representative consumer has love-of-variety preferences, the welfare function exhibits supermodularity in external tariffs: when a country is constrained to charge lower tariffs on imports...
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Welfare effect of tariff for a small country in the case of traditional tariff (exogenous) compared to free trade would decrease the welfare of the country. This paper has shown that the welfare effect of tariff in case of untraditional tariff (endogenous) can be explained by using the specific factors models (Jones) that fundamentally determined by Cournut- Nash Equilibrium system in contrary ...
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If A is a set of social alternatives, a social choice rule (SCR) assigns a subset of A to each potential profile of individuals’ preferences over A, where the subset is interpreted as the set of ‘‘welfare optima’’. A game form (or ‘‘mechanism’’) implements the social choice rule if, for any potential profile of preferences, (i) any welfare optimum can arise as a Nash equilibrium of the game for...
متن کاملA strategic and welfare theoretic analysis of free trade areas
We construct a three-country model to determine how the formation of free trade areas (FTAs) affects optimal tariffs and welfare. We find that, at constant rest of the world (ROW) tariffs, the adoption of internal free trade induces union members to reduce their external tariffs below the Kemp–Wan [J. Int. Econom. 6 (1976) 95–97] level, and causes ROW’s terms of trade to improve and its welfare...
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ژورنال
عنوان ژورنال: Review of International Economics
سال: 2000
ISSN: 0965-7576,1467-9396
DOI: 10.1111/1467-9396.00225