This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Eastern Enlargement of the EU: A Comprehensive Welfare Assessment

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Kohler, Wilhelm
Abstract

This paper takes a welfare-view on eastern enlargement of the EU, focusing on incumbent countries. Enlargement is decomposed into three elements: Single-market integration on commodity markets, budgetary costs from EU-expenditure policies, and single market- induced migration from new to present member countries. I first use an analytical model to derive a welfare equation that identifies the principle channels for incumbent country welfare gains and losses from enlargement, including product differentiation, capital accumulation, and unemployment due to search-costs. I then propose a method that allows to extend welfare results obtained from a detailed calibrated version of this model for Germany to other incumbent countries. The approach relies on model elasticities extracted from the German model which are then applied to other countries' idiosyncratic "enlargement-shocks". Constructing detailed indices for such country specific "enlargement-shocks", I arrive at characteristic inter-country pattern of enlargement- induced welfare effects for all EU15 countries. Aggregating these across countries reveals enlargement to be beneficial for the union as a whole, although several countries stand to suffer welfare losses.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/26377
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26377.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2004
Date of revision:
Handle: RePEc:ags:hiiedp:26377

Contact details of provider:
Postal: Neuer Jungfernstieg 21, D-20347 Hamburg
Phone: 0049-40-42834-0
Fax: 0049-40-42834-451
Email:
Web page: http://www.hwwa.de/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (AgEcon Search).

Related research
Keywords: EU Enlargement; Economic Integration; Commercial Policy; Migration; Welfare Analysis; Computable General Equilibrium; Search Unemployment; International Relations/Trade; Political Economy; F02; F12; F13; F15; F22;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Christian Keuschnigg, 1998. "Investment Externalities and a Corrective Subsidy," International Tax and Public Finance, Springer, vol. 5(4), pages 449-469, October. [Downloadable!] (restricted)
  2. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-47, April. [Downloadable!] (restricted)
    Other versions:
  3. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier. [Downloadable!] (restricted)
  4. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [Downloadable!] (restricted)
    Other versions:
  5. Wilhelm Kohler & Chrisran Keuschnigg, 2001. "An Incumbent Country View on Eastern Enlargement of the EU. Part II: The Austrian Case," Empirica, Springer, vol. 28(2), pages 159-185, June. [Downloadable!] (restricted)
    Other versions:
  6. Christian Keuschnigg & Mirela Keuschnigg & Wilhelm Kohler, 2001. "The German Perspective on Eastern EU Enlargement," The World Economy, Blackwell Publishing, vol. 24(4), pages 513-542, 04. [Downloadable!] (restricted)
  7. Keuschnigg, Christian & Kohler, Wilhelm, 2002. "Eastern Enlargement of the EU: How Much Is It Worth for Austria?," Review of International Economics, Blackwell Publishing, vol. 10(2), pages 324-42, May. [Downloadable!] (restricted)
    Other versions:
  8. Wilhelm Kohler & Christian Keuschnigg, 2000. "An Incumbent Country View on Eastern Enlargement of the EU Part I: A General Treatment," Empirica, Springer, vol. 27(4), pages 325-351, December. [Downloadable!] (restricted)
    Other versions:
  9. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fritz Breuss, . "A Prototype Model of EU's 2007 Enlargement," FIW Working Paper series 007, FIW. [Downloadable!]
  2. Gabriel J Felbermayr & Wilhelm Kohler, 2009. "Can International Migration Ever Be Made a Pareto Improvement?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 305/2009, Department of Economics, University of Hohenheim, Germany. [Downloadable!]
  3. Marius BRÜLHART & Matthieu CROZET & Pamina KOENIG, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 04.02, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
    Other versions:
  4. Wilhelm Kohler & Gabriel Felbermayr, . "Can International Migration Ever Be Made a Pareto Improvement?," Discussion Papers 09/01, University of Nottingham, GEP. [Downloadable!]
  5. Thilo W. Glebe, 2006. "National welfare effects of trade bloc enlargement," Discussion Papers 022006, Technische Universität München, Environmental Economics and Agricultural Policy Group, revised 2008.
  6. Hiro Lee & Dominique van der Mensbrugghe, 2006. "Deep Integration and Its Impacts on Nonmembers: EU Enlargement and East Asia," Discussion Paper Series 184, Research Institute for Economics & Business Administration, Kobe University. [Downloadable!]
  7. Marcel DRACEA, 2008. "The implications of the accession to the European Union upon taxation in Romania," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(36), pages 458-465, may. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS indexes over 800000 items of research in Economics alone.

This page was last updated on 2009-12-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.