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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3476.
Length: Date of creation: Oct 1990 Date of revision: Handle: RePEc:nbr:nberwo:3476
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Kennan, John & Riezman, Raymond, 1988.
"Do Big Countries Win Tariff Wars?,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(1), pages 81-85, February.
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Carsten Kowalczyk & Tomas Sjostrom, 1993.
"Bringing GATT into the Core,"
NBER Working Papers
4343, National Bureau of Economic Research, Inc.
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Kowalczyk, Carsten & Sjostrom, Tomas, 1994.
"Bringing GATT into the Core,"
Economica,
London School of Economics and Political Science, vol. 61(243), pages 301-17, August.
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