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Decomposing the Economic Costs and Benefits of Accession to the EU: the Swiss Case

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Author Info
Jean-Marie Grether
Tobias Müller
Abstract

This paper proposes a decomposition of the likely effects of a "deep" regional integration arrangement for a small country. It is based on a steady-state general equilibrium model which allows to capture the long-term effects of a variety of factors, including the reduction of non-tariff barriers, immigration, budgetary transfers and monetary integration. Particular care is given to the modeling of wealth accumulation, with savings endogenized on the basis of an overlapping generation framework. The effects of product standardization in manufacturing are simulated on the basis of ex-post estimates of the pro-competitive effects of the Single Market Program.

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Paper provided by Département d'Econométrie, Université de Genève in its series Cahiers du Département d'Econométrie with number 2000.02.

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Length: 29 pages.
Date of creation: Mar 2000
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Handle: RePEc:gen:geneem:2000.02

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Related research
Keywords: regional integration; applied general equilibrium;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models

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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. Baldwin, Richard & Forslid, Rikard & Haaland, Jan I., 1995. "Investment Creation and Investment Diversion: Simulation Analysis of the Single Market Programme," CEPR Discussion Papers 1308, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Haaland, Jan I. & Norman, Victor D, 1992. "Global Production Effects of European Integration," CEPR Discussion Papers 669, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Mercenier, Jean & Schmitt, Nicolas, 1996. "On Sunk Costs and Trade Liberalization in Applied General Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(3), pages 553-71, August.
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  4. Hamid Faruqee & Peter Isard & Douglas Laxton & Eswar Prasad & Bart Turtelboom, 1998. "Multimod Mark III: The Core Dynamic and Steady State Model," IMF Occasional Papers 164, International Monetary Fund. [Downloadable!]
  5. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526. [Downloadable!] (restricted)
  6. 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)
  7. Keuschnigg, Christian & Kohler, Wilhelm, 1996. "Commercial policy and dynamic adjustment under monopolistic competition," Journal of International Economics, Elsevier, vol. 40(3-4), pages 373-409, May. [Downloadable!] (restricted)
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