The United States of Europe: A Gravity Model Evaluation of the Four Freedoms
Keith Head and
Thierry Mayer
Journal of Economic Perspectives, 2021, vol. 35, issue 2, 23-48
Abstract:
One of the pillars of the 1957 Treaty of Rome that ultimately led to the European Union is the commitment to the four freedoms of movement (goods, services, persons, and capital). Over the following decades, as the members expanded in numbers, they also sought to deepen the integration amongst themselves in all four dimensions. This paper estimates the success of these policies based primarily on a gravity framework. Distinct from past evaluations, we augment the traditional equation for international flows with the corresponding intra-national flows, permitting us to distinguish welfare-improving reductions in frictions from Fortress-Europe effects. We complement the gravity approach by measuring the extent of price convergence. We compare both quantity and price assessments of free movement with corresponding estimates for the 50 American states.
JEL-codes: E02 F15 R12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)
Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/jep.35.2.23 (application/pdf)
https://doi.org/10.3886/E133281V1 (text/html)
https://www.aeaweb.org/doi/10.1257/jep.35.2.23.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/jep.35.2.23.ds (application/zip)
Related works:
Working Paper: The United States of Europe: A gravity model evaluation of the four freedoms (2021) 
Working Paper: The United States of Europe: A Gravity Model Evaluation of the Four Freedoms (2021) 
Working Paper: The United States of Europe: A Gravity Model Evaluation of the Four Freedoms (2021) 
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:jecper:v:35:y:2021:i:2:p:23-48
Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions
DOI: 10.1257/jep.35.2.23
Access Statistics for this article
Journal of Economic Perspectives is currently edited by Enrico Moretti
More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().