Welfare gains of joining a union for Latin America
Publication Date
December 14, 2023
Abstract
I present a set of scenarios that analyze the intention of a union for the case of Latin America countries by developing a calibrated DSGE model with heterogeneous union. The model accounts for both a monetary and a fiscal union that controls for real and financial frictions with the implementation of different monetary and macroprudential policy regimes.
Preliminary results suggests that in general countries are better off (until some extent) with a monetary and a fiscal union that controls for macroprudential policies, but it seems that these gains comes exclusively from the weighted gains of peripheral countries rather than for core countries as well, i.e. in almost all scenarios core countries are better off without any type of union. The scenario with no monetary but just fiscal union is the only one that reports welfare losses (-0.0028), while the scenario with a monetary union and heterogeneous macroprudential policies, just for peripheral countries, accounts for the greatest welfare gains in the analysis (+0.0258).
Item Type
ethesis
Thesis Type
MRes
Supervisors
Subjects (LC)
Associated Schools / Departments
School of Economics (UK)
eprints ID
72316
UoN Repository URI
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FINAL Research_Dissertation_MRes_V2 (4).pdf
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Full-text
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Examined. MRes thesis
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2.86 MB
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