Economic Consequences of Statehood for Puerto Rico - A General Equilibrium Analysis
AbstractIt has been quite some time that Puerto Ricans have been debating the status issue. Put simply, it is the issue of appropriate political arrangement between the island and the mainland USA. There are basically three status options to consider, namely (a) statehood, (b) commonwealth, and (c) independence. The question of right political status is indeed a difficult and complicated question. It has many facets: political, economic, cultural, etc. It is therefore no wonder that, despite several referendums, no broad agreement on the status issue has yet emerged. Among different dimensions of the status question, the one that is of foremost importance is economic. It is also possible to be more objective with regard to the economic aspect than with regard to other aspects. Hence, if agreement is possible with regard to any particular aspect of the status issue, it should be regarding the economic aspect. Agreement on the economic aspect may also lead to agreement on other aspects of the status debate. This provides the motivation for this paper. It hopes to contribute to a better understanding of the economic consequences of statehood for Puerto Rico. In this paper, we carry the study of economic consequences of statehood for the Puerto Rican economy one step forward. In order to do so, we construct a computable general equilibrium (CGE) model for the Puerto Rican economy and use this model to study the question. Our broad conclusion is that the results presented by CBO were bleaker than truly warranted.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 1998-06.
Length: 38 pages
Date of creation: Dec 1998
Date of revision:
Puerto Rico; general equilibrium; statehood;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
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.:
- Dutta, M & Su, V, 1969. "An Econometric Model of Puerto Rico," Review of Economic Studies, Wiley Blackwell, vol. 36(107), pages 319-33, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafik Majidov).
If references are entirely missing, you can add them using this form.