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A Simulation Experiment of a Customs Union

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  • Reza Oladi

    ()
    (Utah State University)

  • John Gilbert

    ()
    (Utah State University)

Abstract

Here a numerical simulation model, implemented in Excel, that can be used to expand student understanding of the theory of customs unions is presented. The model allows examination of core customs union issues including trade creation, trade diversion, and the KempWan theorem. By responding to an experimental assignment that guides them through the simulation, students are able to learn the theory in a hands-on manner. We also attempt to measure the effectiveness of our approach, and find evidence to suggest exposure to simulation improves student outcomes.

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File URL: http://www.economicsnetwork.ac.uk/cheer/ch18/oladi.pdf
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Bibliographic Info

Article provided by Economics Network, University of Bristol in its journal Computers in Higher Education Economics Review.

Volume (Year): 18 (2006)
Issue (Month): 1 ()
Pages: 29-33

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Handle: RePEc:che:chepap:v:18:y:2006:i:1:p:29-33

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Postal: University of Bristol, BS8 1HH, United Kingdom
Fax: +44(0)117 331 4396
Web page: http://www.economicsnetwork.ac.uk/cheer

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  1. Soumaya M. Tohamy & J. Wilson Mixon, 2003. "Lessons from the Specific Factors Model of International Trade," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(2), pages 139-150, January.
  2. Robert Scollay & John P. Gilbert, 2001. "New Regional Trading Arrangements in the Asia Pacific?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa63.
  3. John Gilbert, 2005. "A Trade War Simulation/Experiment in Excel," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 17(1), pages 4-8.
  4. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
  5. J. Wilson Mixon, Jr. & Soumaya Tohamy, 2001. "Using Microsoft Excel in Principles of Economics," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 14(2), pages 4-6.
  6. Soumaya M. Tohamy, 2004. "Combining Fun and Learning in Principles of Economics Courses," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 16(1), pages 4-9.
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