Welfare gains of joining a union for Latin America

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...

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Main Author: Ardiles Decker, Fabrizio Leonardo
Format: Thesis (University of Nottingham only)
Language:English
Published: 2023
Subjects:
Online Access:https://eprints.nottingham.ac.uk/72316/
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author Ardiles Decker, Fabrizio Leonardo
author_facet Ardiles Decker, Fabrizio Leonardo
author_sort Ardiles Decker, Fabrizio Leonardo
building Nottingham Research Data Repository
collection Online Access
description 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).
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spelling nottingham-723162024-03-20T13:25:28Z https://eprints.nottingham.ac.uk/72316/ Welfare gains of joining a union for Latin America Ardiles Decker, Fabrizio Leonardo 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). 2023-12-14 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/72316/1/FINAL%20Research_Dissertation_MRes_V2%20%284%29.pdf Ardiles Decker, Fabrizio Leonardo (2023) Welfare gains of joining a union for Latin America. MRes thesis, University of Nottingham. Currency Union Macroprudential Policies Welfare Latin America
spellingShingle Currency Union
Macroprudential Policies
Welfare
Latin America
Ardiles Decker, Fabrizio Leonardo
Welfare gains of joining a union for Latin America
title Welfare gains of joining a union for Latin America
title_full Welfare gains of joining a union for Latin America
title_fullStr Welfare gains of joining a union for Latin America
title_full_unstemmed Welfare gains of joining a union for Latin America
title_short Welfare gains of joining a union for Latin America
title_sort welfare gains of joining a union for latin america
topic Currency Union
Macroprudential Policies
Welfare
Latin America
url https://eprints.nottingham.ac.uk/72316/