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How Often Are Propositions on the Effects of Customs Unions Theoretical Curiosa and When Should They Guide Policy?
Working paper   Open access

How Often Are Propositions on the Effects of Customs Unions Theoretical Curiosa and When Should They Guide Policy?

Lisandro Abrego, Raymond Riezman and John Whalley
NBER working paper series, Vol.8304
National Bureau of Economic Research
05/17/2001
DOI: 10.3386/w8304
url
https://doi.org/10.3386/w8304View
Open Access

Abstract

This paper uses computational techniques to assess whether or not various propositions that have been advanced as plausible in the literature on Customs Unions (or other regional trade agreements) may actually hold. The idea is to make probabilistic statements as to whether propositions of interest might hold, rather than to restrict assumptions so they unambiguously hold. Their aim is to blend theory and numerical simulation and go beyond the ambiguous analytically derived propositions that dominate the theoretical literature so as to assess the likelihood of propositions holding for particular model specifications.
Economic Policy Budgets/Expenditures Government International trade National Bureau of Economic Research

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