A Theory of Economic Disintegration
Eckhard Janeba () and
VfS Annual Conference 2020 (Virtual Conference): Gender Economics from Verein für Socialpolitik / German Economic Association
We develop a theory of economic disintegration that features both endogenously formed tax and trade policies. We show very generally that the economic disintegration of a country from an economic union leads to a deeper integration of international trade institutions. Moreover, we set up a multi-country, multi-sector general equilibrium trade model with internationally mobile firms. We address the key dimensions of economic disintegration, such as tariffs, non-tariff barriers, the harmonization of production standards and regulations, as well as household migration and analyze their effects on the domestic tax policies of asymmetric countries.
Keywords: Trade Policy; Tax/Subsidy Competition; Oligopolistic Markets; Economic Integration (search for similar items in EconPapers)
JEL-codes: F13 F15 F22 F53 H25 H73 (search for similar items in EconPapers)
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Working Paper: A Theory of Economic Disintegration (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc20:224544
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