Regional Characteristics, Monetary Union and Regional Income Volatility
AbstractRelatively little attention has been paid to the issue of how individual regions will fare as a consequence of the national decision on whether or not to adopt the single European currency. Regional welfare is influenced by both mean income and volatility. The present paper focuses on volatility. We develop a model of a regionally-integrated macroeconomy to explore how the income variance implied by the national decision on EMU is distributed across a country's regions. The model suggests that weaker regions are likely to do better than stronger regions with respect to volatility if the national economy participates in EMU.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 200111.
Length: 23 pages
Date of creation: 13 May 2001
Date of revision:
Monetary Union; Regional Income; Volatility;
Find related papers by JEL classification:
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
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