After decades of successful growth, economic unions have recently become the focus of heightened political controversy. To understand why, we develop a theoretical model of the effects on trade, income distribution and welfare of economic unions that differ in size and scope. Our model shows that political support for international unions can grow with their breadth and depth provided member countries are sufficiently similar. However, differences in economic size and factor endowments can trigger disagreement over the value of unions. Our model is consistent with some salient features of the process of European integration and statistical evidence from survey data.

Gancia, G., Ponzetto, G., Ventura, J. (2020). A theory of economic unions. JOURNAL OF MONETARY ECONOMICS, 109(January 2020), 107-127 [10.1016/j.jmoneco.2019.11.007].

A theory of economic unions

Gancia G.;
2020

Abstract

After decades of successful growth, economic unions have recently become the focus of heightened political controversy. To understand why, we develop a theoretical model of the effects on trade, income distribution and welfare of economic unions that differ in size and scope. Our model shows that political support for international unions can grow with their breadth and depth provided member countries are sufficiently similar. However, differences in economic size and factor endowments can trigger disagreement over the value of unions. Our model is consistent with some salient features of the process of European integration and statistical evidence from survey data.
Articolo in rivista - Articolo scientifico
Economic unions; European integration; Non-tariff barriers;
English
107
127
21
Gancia, G., Ponzetto, G., Ventura, J. (2020). A theory of economic unions. JOURNAL OF MONETARY ECONOMICS, 109(January 2020), 107-127 [10.1016/j.jmoneco.2019.11.007].
Gancia, G; Ponzetto, G; Ventura, J
File in questo prodotto:
File Dimensione Formato  
Gancia-2020-J Monet Econ-VoR.pdf

accesso aperto

Descrizione: Research Article
Tipologia di allegato: Publisher’s Version (Version of Record, VoR)
Dimensione 1.28 MB
Formato Adobe PDF
1.28 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/396700
Citazioni
  • Scopus 5
  • ???jsp.display-item.citation.isi??? 3
Social impact