Tavares, José; Luque, Jaime; Morelli, Massimo - Robert Schuman Centre for Advanced Studies (RSCAS), … - 2012
In a setting where heterogeneous jurisdictions share a common policy, an increase in volatility breaks unanimous support for the status-quo and may prompt a subset of jurisdictions to favor either deepening the agreement through a fiscal union, or revert to autarky. A reassignment of political...