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Austria in the European Union: dynamic gains from integration and distributional implications
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Keuschnigg and Kohler as discussed by the authors measured the welfare effects of Austria's membership of the EU and concluded that the ultimate gains from EU membership will depend on how these distribution issues are solved and how the budgetary cost is financed.Abstract:
Austria in the European Union
Dynamic gains from integration and distributional implications
This article proposes to measure the welfare effects of Austria's membership of the EU. In addition to the traditional sectoral reallocation effects of open trade, our computations take into account a number of effects not usually measured: expected capital accumulation, saving, and income redistribution across generations. EU membership involves trade integration (lower trade costs, a common external tariff), adopting the common agricultural policy, and membership contributions to the EU. The gains from trade integration and the adoption of the common agricultural policy are partly offset by the burden of contribution payments. The net welfare gain, measured in terms of an equivalent permanent income stream, is 1.24% of GDP. This aggregate figure masks sizeable distribution effects. As expected, agriculture is particularly hard hit. Moreover, membership has a tendency to favour the old as well as future generations at the expense of those entering economic life at the time of accession. We conclude that the ultimate gains from EU membership will depend on how these distribution issues are solved and how the budgetary cost is financed.
—Christian Keuschnigg and Wilhelm Kohlerread more
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Austria, Finland and Sweden in the European Union
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Journal ArticleDOI
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Christian Keuschnigg,Christian Keuschnigg,Christian Keuschnigg,Wilhelm Kohler,Wilhelm Kohler +4 more
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References
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Journal ArticleDOI
New goods, old theory, and the welfare costs of trade restrictions
TL;DR: In this article, the implications of new goods have not more extensively been explored, especially given that the basic economic issues were identified 150 years ago, and why this seemingly small change in the assumptions of a model can have such important positive and normative implications.
Journal ArticleDOI
Trade Flows and Trade Policy after 1992
TL;DR: A detailed analysis of the effects of the European Community's single market on international trade can be found in this paper, where detailed case-studies show that integration has complex effects on trade flows and prices and stress the importance of devising a satisfactory international trade policy for the completed market.
Book
The Macroeconomics of European Agriculture
TL;DR: In this article, the authors suggested that the cost to consumers and taxpayers of agricultural protection in Europe in terms of welfare and lost and output foregone should be investigated, based on recent empirical evidence.
Book
Commodity Tax Harmonization in the European Community: A General Equilibrium Analysis of Tax Policy Options in the Internal Market
TL;DR: In this article, the authors studied the welfare effects of tax reform in the EC and proposed a dual general equilibrium framework to evaluate the welfare effect of a change in the tax base.