On the Optimality of Economic Integration
We uncover conditions on the initial income and net foreign assets of potential union members such that forming a union is welfare-improving over standing alone in the world economy. Our model predicts that economic unions (i) occur relatively infrequently, and are more likely to emerge (ii) among homogeneous countries, and (iii) among rich countries.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.EconomicDynamics.org/society.htmEmail:
More information through EDIRC
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.:
- Zhang, H.H., 1995.
"Endogenous Borrowing Constraints with Incomplete Markets,"
GSIA Working Papers
1995-25, Carnegie Mellon University, Tepper School of Business.
- Zhang, Harold H, 1997. " Endogenous Borrowing Constraints with Incomplete Markets," Journal of Finance, American Finance Association, vol. 52(5), pages 2187-2209, December.
- Ábrahám, Árpád & Cárceles-Poveda, Eva, 2010.
"Endogenous trading constraints with incomplete asset markets,"
Journal of Economic Theory,
Elsevier, vol. 145(3), pages 974-1004, May.
- Eva Carceles Poveda & Arpad Abraham, 2004. "Endogenous Trading Constraints with Incomplete Asset Markets," 2004 Meeting Papers 667, Society for Economic Dynamics.
- Mark L. J. Wright, 2004.
"Private capital flows, capital controls, and default risk,"
Federal Reserve Bank of San Francisco, issue Jun.
- Wright, Mark L.J., 2006. "Private capital flows, capital controls, and default risk," Journal of International Economics, Elsevier, vol. 69(1), pages 120-149, June.
- Yan Bai & Jing Zhang, 2010. "Solving the Feldstein-Horioka Puzzle With Financial Frictions," Econometrica, Econometric Society, vol. 78(2), pages 603-632, 03.
- Tauchen, George, 1986. "Finite state markov-chain approximations to univariate and vector autoregressions," Economics Letters, Elsevier, vol. 20(2), pages 177-181.
- Timothy J Kehoe & David K Levine, 1993.
"Debt Constrained Asset Markets,"
Levine's Working Paper Archive
1276, David K. Levine.
- Clarida, Richard H, 1990. "International Lending and Borrowing in a Stochastic, Stationary Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 543-58, August.
When requesting a correction, please mention this item's handle: RePEc:red:sed009:1043. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.