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Political (IR) Relevance of Classical Customs Union Theory

机译：古典关税同盟理论的政治（IR）相关性

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The article addresses the question: can the choice of countries to form Customs Unions (CU's) rather than to unilaterally reduce their tariffs be defended (explained) on theoretical grounds if one leaves aside possible differences between private and social costs, if one does not rely on public choice theory and one sticks to the original assumption of competitive markets. The present article uses a flexible prices-flexible output type of multi-country framework with capital accumulation (to get also long run outcomes), where factors of production (labor) can be underutilized, due to a labor market that is distorted because of a nominally constant wage rate. Secondly, 'welfare' is measured in two ways now. First, the author looks at the impact of the commercial policy on the goals of economic policy as they are generally accepted in western economies: the level of production, the rate of unemployment and the balance of payments. In addition, the impact on the government account is analyzed. If these four items are favorably influenced, he concludes that the commercial policy is successful in 'keynesian terms'. Second, like the traditional CU approach, he takes as a 'classical' indicator for 'welfare' the level of consumption.

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