On the Interpretation of the Kemp/Wan Theorem.

This note considers the well-known theorem of M. Kemp and H. Wan concerning the welfare gains from the formation of customs unions. The author argues that the theorem may not imply that a union can unilaterally guarantee a welfare gain if nonmembers set tariffs optimally against the union. He provides an example in which a customs union cannot improve the joint welfare of members. Copyright 1995 by Royal Economic Society.

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Year of publication:	1995
Authors:	Richardson, Martin
Published in:	Oxford Economic Papers. - Oxford University Press. - Vol. 47.1995, 4, p. 696-703
Publisher:	Oxford University Press

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005744130