2010 Fiscal Year Final Research Report
Size Effects and Welfare Analysis of Monetary Union
| Project/Area Number |
20530219
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Waseda University |
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Principal Investigator |
AKIBA Hiroya Waseda University, 政治経済学術院, 教授 (60138576)
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| Project Period (FY) |
2008 – 2010
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| Keywords | 国際経済学 |
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| Research Abstract |
According to my analysis using a large-country intertemporal open economy macro model, it was shown that the relative price of a monetary union (MU) against the non-MU decreases as the MU's size increases, and the MU's terms of trade deteriorate accordingly. The welfare levels of both MU and non-MU increase, but the former's increase is larger than that of the latter. Examining the actual historical data of MUs and approximating the size by population o width, the size effect due to population was statistically shown on the welfare level proxied by GDP.
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