Decomposing the Economic Costs and Benefits of Accession to the EU: the Swiss Case
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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- Hamid Faruqee & Douglas Laxton & Bart Turtelboom & Peter Isard & Eswar Prasad, 1998. "Multimod Mark III; The Core Dynamic and Steady State Model," IMF Occasional Papers 164, International Monetary Fund.
- Mercenier, Jean & Schmitt, Nicolas, 1996.
"On Sunk Costs and Trade Liberalization in Applied General Equilibrium,"
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- Jean Mercenier & Nicolas Schmitt, 1995. "On sunk costs and trade liberalization in applied general equilibrium," Staff Report 188, Federal Reserve Bank of Minneapolis.
- Haaland, Jan I. & Norman, Victor D, 1992. "Global Production Effects of European Integration," CEPR Discussion Papers 669, C.E.P.R. Discussion Papers.
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