This paper introduces a new theoretical framework of international unions qua coalitions of countries adopting a common policy and common supranational institutions. We introduce a general class of non-cooperative spatial bargaining games of coalition formation among three countries in order to...

This paper examines stock market integration between the ASEAN five and the US and China, respectively, over the period from November 2002 to March 2018. The linkages between both aggregate and financial sector stock indices (both weekly and monthly) are analysed using fractional integration and...

In the struggle between the forces of free trade and the restrictive influence of insularism the latter recently seems to have the upper hand. This is illustrated by the referendum of June 23, 2016 where the United Kingdom (UK) voted to leave the European Union (EU). In this paper we evaluate...

The quasi-exogenous division of the French regions Alsace and Lorraine after the Franco-Prussian War allows us to provide evidence about group identity formation within historically homogeneous regions. Using several measures of stated and revealed preferences spanning over half a century, we...

The quasi-exogenous division of the French regions Alsace and Lorraine after the Franco-Prussian War allows us to provide evidence about group identity formation within historically homogeneous regions. We use several measures of stated and revealed preferences at the municipal-level in a...

In recent decades, Southeast Asian economies have prospered through an outward-oriented strategy, through intra-regional integration under the Association of the Southeast Asian Nations (ASEAN) initiative and through participating in the East Asian production networks. In the 1970-80´s, South...

Most FDI takes place between the developed countries, which suggests that the market-seeking motive is important for understanding FDI. However, given the stylized fact that trade barriers (e.g. transportation costs and financial barriers) have declined over the past 20 years, models that aim to...

Multinational firms are known to shift profits and countries are known to compete over shifty profits. Two major principles for corporate taxation are Separate Accounting (SA) and Formula Apportionment (FA). These two principles have very different qualities when it comes to preventing profit...

We show that the creation of the first integrated pan-European transport network during Roman times influences economic integration over two millennia. Drawing on spatially highly disaggregated data on excavated Roman ceramics, we document that interregional trade was strongly influenced by...

This study aims to scrutinize the change of public revenue systems of the EU-15 between 1980 and 2016. The share of consumption taxes in total tax revenues increases and this process have triggered higher tax burden on labor in most of the EU countries via indirect taxation. In this study I use...