search query: @author Ihori, T. / total: 6
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| Author: | Ihori, T. |
| Title: | Economic integration of countries with international public goods |
| Journal: | Journal of the Japanese and International Economies
1994 : DEC, VOL. 8:4, p. 530-550 |
| Index terms: | ECONOMIC INTEGRATION INTERNATIONAL PUBLIC GOODS |
| Language: | eng |
| Abstract: | This paper develops a model of economic integration that is subject to random emergency costs. To mitigate the effects of these disruptions, each country that belongs to a club provides an international public good. This paper incorporates voluntary provision of public goods into a rigorous general equilibrium model of economic integration under uncertainly. It is shown that an increase in the probability of war or the penalty ration in a club may raise the welfare and the size of the club if risk aversion with respect to private consumption is not so large. |
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