We study cooperative and non-cooperative fiscal policy in a multi-country model where asset markets are segmented and countries face terms of trade externalities. We show that the optimal form of fiscal cooperation, or fiscal union, is defined by the Armington elasticity of substitution between...

Based exclusively on official data, provided by the State Statistical Office of CIS (Goskomstat of the CIS), this paper provides first an analyses of the main economic differences between CIS countries, and then focuses on consolidated budgets in CIS countries in the years 1992 and 1993