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dc.contributor.authorCastro, Rui
dc.contributor.authorKoumtingué, Nelnan
dc.date.accessioned2015-01-13T20:59:48Z
dc.date.available2015-01-13T20:59:48Z
dc.date.issued2014-08
dc.identifier.urihttp://hdl.handle.net/1866/11343
dc.publisherUniversité de Montréal. Département de sciences économiques.fr
dc.subjectIncomplete markets
dc.subjectEndogenous borrowing constraints
dc.subjectRisk sharing
dc.subjectEconomic integration
dc.titleOn the individual optimality of economic integrationfr
dc.typeArticlefr
dc.contributor.affiliationUniversité de Montréal. Faculté des arts et des sciences. Département de sciences économiques
dcterms.abstractWhich countries find it optimal to form an economic union? We emphasize the risk-sharing benefits of economic integration. Consider an endowment world economy model, where international financial markets are incomplete and contracts not enforceable. A union solves both frictions among member countries. We uncover conditions on initial incomes and net foreign assets of potential union members such that forming a union is welfare-improving over standing alone in the world economy. Consistently with evidence on economic integration, unions in our model occur (i) relatively infrequently, and (ii) emerge more likely among homogeneous countries, and (iii) rich countries.fr
dcterms.isPartOfurn:ISSN:0709-9231
dcterms.languageengfr
UdeM.VersionRioxxVersion publiée / Version of Record
oaire.citationTitleCahier de recherche
oaire.citationIssue2014-07


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