A Theory of Economic Unions: A Comment
Alexander Monge-Naranjo
No 2019-35, Working Papers from Federal Reserve Bank of St. Louis
Abstract:
Gino Gancia, Giacomo Ponzetto and Jaume Ventura have written an extremely interesting paper on a topic that is very timely for the global economy. In this article, I will first argue that GPV have succeeded in formalizing their hypothesis, and that while providing very suggestive analytical results, additional work can and should be done with the model, especially with regards to relative changes in the relative weights of incumbent countries. Second, I will comment on the potential insights if the rest of the world is modeled more realistically. Third, I will call for extending the baseline model to incorporate additional aspects beyond trade, such as investment and immigration flows, which appear to be relevant for the story of the European Union and its discontents. Four, I will add my non-European perspective on using the model to understand the story of the European Union.
Keywords: Economic unions; Non-tariff barriers; European integration. (search for similar items in EconPapers)
JEL-codes: D71 D78 F15 F55 F62 H77 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2019-10-25
New Economics Papers: this item is included in nep-int and nep-ore
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Citations: View citations in EconPapers (1)
Published in Journal of Monetary Economics
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DOI: 10.20955/wp.2019.035
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