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The Zollverein and the Formation of a Customs Union

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  • Florian Ploeckl

    ()
    (Department of Economics and Nuffield College, University of Oxford)

Abstract

The Zollverein, the German customs union of 1834, was the institutional centrepiece of Germany’s economic unification. A bargaining model is applied to analyze the structure of its negotiation process and accession sequence. The existence of negative coalition externalities, the effect of a coalition on non-participants, led Prussia to choose sequential over multilateral negotiations. The nature of these externalities within the areas of financial revenues, trade policy and domestic political economy also explains the observed accession sequence. The choice of a customs union as institutional structure allowed Prussia to extract higher concessions from other states due to stronger coalition externalities.

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Bibliographic Info

Paper provided by Economics Group, Nuffield College, University of Oxford in its series Oxford University Economic and Social History Series with number _084.

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Length: 40 pages
Date of creation: 20 Aug 2010
Date of revision:
Handle: RePEc:nuf:esohwp:_084

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Web page: http://www.nuff.ox.ac.uk/economics/

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Keywords: N73; F13;

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  1. Richard Baldwin, 1993. "A Domino Theory of Regionalism," NBER Working Papers 4465, National Bureau of Economic Research, Inc.
  2. Helpman, Elhanan & Antras, Pol & Aghion, Philippe, 2007. "Negotiating Free Trade," Scholarly Articles 3351239, Harvard University Department of Economics.
  3. Jan Luiten van Zanden & Arthur van Riel, 2004. "Introduction to The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century
    [The Strictures of Inheritance: The Dutch Economy in the Nineteenth Century]
    ," Introductory Chapters, Princeton University Press.
  4. Ploeckl, Florian, 2008. "Borders, Market Size and Urban Growth, The Case of Saxon Towns and the Zollverein in the 19th Century," Working Papers 55, Yale University, Department of Economics.
  5. Shiue, Carol H., 2005. "From political fragmentation towards a customs union: Border effects of the German Zollverein, 1815 to 1855," European Review of Economic History, Cambridge University Press, vol. 9(02), pages 129-162, August.
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Cited by:
  1. Florian Ploeckl, 2008. "Borders, Market Size and Urban Growth, The Case of Saxon Towns and the Zollverein in the 19th Century," Working Papers 966, Economic Growth Center, Yale University.
  2. Schneider, Eric B., 2013. "Real wages and the family: Adjusting real wages to changing demography in pre-modern England," Explorations in Economic History, Elsevier, vol. 50(1), pages 99-115.
  3. Ploeckl, Florian, 2013. "The internal impact of a customs union; Baden and the Zollverein," Explorations in Economic History, Elsevier, vol. 50(3), pages 387-404.
  4. Ploeckl, Florian, 2012. "Endowments and market access; the size of towns in historical perspective: Saxony, 1550–1834," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 607-618.
  5. Switgard Feuerstein, 2013. "From the Zollverein to the Economics of Regionalism," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(3), pages 367-388, May.
  6. Eric Schneider, 2012. "Prices and Production: Agricultural Supply Response in Fourteenth-Century England," Oxford University Economic and Social History Series _097, Economics Group, Nuffield College, University of Oxford.
  7. Florian Ploeckl, 2010. "Borders, market access and urban growth; the case of Saxon towns and the Zollverein," Working Papers 2010/42, Institut d'Economia de Barcelona (IEB).

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