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Discussion Paper Details

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Title: International Unions

Author(s): Alberto F Alesina, Ignazio Angeloni and Federico Etro

Publication Date: May 2003

Keyword(s): european union, federalism, international unions and political economy

Programme Area(s): International Macroeconomics

Abstract: We model an international union as a group of countries deciding together on the provision of public goods or policies that generate spillovers across members. The trade-off between benefits of coordination and loss of independent policy-making endogenously determines size, composition and scope of the union. Policy uniformity reduces the union?s size, may block enlargement processes and induce excessive centralization. We study flexible rules with non-uniform policies that reduce these inefficiencies focusing on arrangements relevant in the context of existing unions or federal states, like enhanced cooperation, subsidiarity, federal mandates and earmarked grants.

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Bibliographic Reference

Alesina, A, Angeloni, I and Etro, F. 2003. 'International Unions'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3913