NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Welfare and Customs Unions

Carsten Kowalczyk

NBER Working Paper No. 3476
Issued in October 1990
NBER Program(s):   ITI   IFM

This paper proposes that Viner's celebrated trade diversion and trade creation terminology for the customs union problem be abandoned. As the alternative is offered a welfare calculus based upon the terms-of-trade and volume-of-trade taxonomy from the theory of tariffs. The paper discusses, by application of this calculus, the two outstanding controversies in the theory of customs unions.

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Document Object Identifier (DOI): 10.3386/w3476

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