Prospects of a Canada-US Customs Union: a Computable General Equilibrium Assessment
AbstractA number of respected analysts and economic commentators in Canada have recently been calling for deeper economic integration with the USA. Most proponents of deepening economic integration favour the European progressive approach: a customs union, to be followed by a â€œsingle marketâ€ and eventually a full economic union. Evidently, the complexity of negotiating and implementing these arrangements increase from one step to the next. In this paper, we attempt to shed quantitative light in the simplest and perhaps most attainable scenario of closer integration, that of a basic customs union between the two countries. This involves harmonization of external tariffs towards the Rest of the World coupled with elimination of remaining tariff protection in bilateral trade between the two countries. Our methodology involves the development of a Computable General Equilibrium model where the representative consumer maximizes an inter-temporal utility function. The model and related data consists of three Canadian regions, The USA and the Rest of the World and nine economic sectors. The dynamic aspect of our model allows for a better interpretation of the adjustment process as well as capital accumulation and investment response to the proposed integration reform.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2006 with number 316.
Date of creation: 04 Jul 2006
Date of revision:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.