Title

A Second Elementary Proposition Concerning:The Formation of Customs Unions

Abstract

The conclusions of the 1976 Kemp-Wan proposition are shown to be substantially valid even if all tariff vectors, both pre-union and post-union, are optimally chosen.

JEL classification: F02; F12; F13; F15

Murray C. KEMP
University of New South Wales


Koji SHIMOMURA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059