EconPapers    
Economics at your fingertips  
 

An Economic Theory of GATT

Robert Staiger () and Kyle Bagwell

American Economic Review, 1999, vol. 89, issue 1, 215-248

Abstract: The authors propose a unified theoretical framework within which to interpret and evaluate the foundational principles of GATT. Working within a general equilibrium trade model, they represent government preferences in a way that is consistent with national income maximization but also allows for the possibility of distributional concerns as emphasized in leading political-economy models. Using this general framework, the authors establish that GATT's principles of reciprocity and nondiscrimination can be viewed as simple rules that assist governments in their effort to implement efficient trade agreements. From this perspective, the authors argue that preferential agreements undermine GATT's ability to deliver efficient multilateral outcomes.

JEL-codes: F13 F02 (search for similar items in EconPapers)
Date: 1999
Note: DOI: 10.1257/aer.89.1.215
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (448) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.89.1.215 (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: An economic theory of GATT (1998) Downloads
Working Paper: An Economic Theory of GATT (1997) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:89:y:1999:i:1:p:215-248

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-01-27
Handle: RePEc:aea:aecrev:v:89:y:1999:i:1:p:215-248