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The Zollverein and the Sequence of a Customs Union

Florian Ploeckl ()

No 2015-02, School of Economics Working Papers from University of Adelaide, School of Economics

Abstract: The Zollverein was the first international customs union, essentially defining these particular trade agreements. This paper utilizes the predictions of a game theoretic model to analyse the observed sequence of accessions into this union. Coalition externalities, the effects the accession of one state has on states remaining on the outside, are the central mechanisms explaining the negotiations between Prussia, the agenda setter, and other German states. This is demonstrated by detailing these financial, strategic and political externalities and demonstrating their influence on trade policy decisions.

Keywords: Customs Union; Germany; Coalition Externalities; Trade Negotiations (search for similar items in EconPapers)
JEL-codes: F13 N43 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2015-02
New Economics Papers: this item is included in nep-int
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