Externalities and Free Trade Agreements
AbstractThis paper studies the consequences of a private or depletable externality on free trade agreements in a general equilibrium framework. lt is shown that there always exists a stable system of free trade spaces in the world economy. This stable system can result in either non-cooperation, partial cooperation, or total cooperation among countries of different types. The non-cooperation system is Pareto dominated by any other cooperating system. By enforcing a tax policy, a GATT arbitrator is able to implement Pareto superior stable systems in which countries of different type are cooperating.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (2000)
Issue (Month): 59 ()
Other versions of this item:
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
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- MAULEON, Ana & SONG, Huasheng & VANNETELBOSCH, Vincent, .
"Networks of free trade agreements among heterogeneous countries,"
CORE Discussion Papers RP
-2200, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ana Mauleon & Huasheng Song & Vincent Vannetelbosch, 2010. "Networks of Free Trade Agreements among Heterogeneous Countries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 471-500, 06.
- Ana, MAULEON & Huasheng, SONG & Vincent, VANNETELBOSCH, 2006. "Networks for Free Trade Agreements among Heterogeneous Countries," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006029, Université catholique de Louvain, Département des Sciences Economiques.
- MAULEON, Ana & SONG, Huasheng & VANNETELBOSCH, Vincent, 2006. "Networks of free trade agreements among heterogeneous countries," CORE Discussion Papers 2006053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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