Aggregate scale economies, market integration, and optimal welfare state policy

Using a two-sector–two-country model with aggregate scale economies and unionisation, we show that optimal welfare state policy entails positive levels of unemployment benefits under free-trade and capital mobility. In this setting, economic integration does not reduce the revenue raising capacity o...

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Bibliographic details

Volume:	69
Main Author:	Molana, Hassan Montagna, Catia
Format:	Journal Article
Language:	English
Zielgruppe:	Academic
Place of publication:	Elsevier B.V 2006 Elsevier Elsevier Science Publishers
published in:	Journal of international economics Vol. 69; no. 2; pp. 321 - 340
Data of publication:	2006
ISSN:	0022-1996 1873-0353
EISSN:	1873-0353
Discipline:	Economics Business
Series:	Journal of International Economics
Subjects:	International trade Capital mobility Circular causation Welfare state Optimal policy Analysis International economic integration Capital movements Forecasts and trends Economic policy Free trade Unemployment E6 International trade Circular causation Welfare state Optimal policy F1 H3 J5 Capital mobility F4
Online Access:	available in Bonn?
Database:	RePEc RePEc IDEAS CrossRef Academic OneFile (A&I only) Database information Databases - DBIS