This paper explores the impact of Korean unification on North and South Korea under the hypothetical scenario that unification takes place along the peaceful but unanticipated path similar to the experience of German reunification. Using a global dynamic intertemporal general equilibrium model,...

This study reviews early simulations of the effects of German unification using three different rational-expectations multi-country models. Despite significant differences in their structures and in the implementations of the unification shock, the models delivered a number of common results...