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One Remark on Spillover Effects and the Gains from Coordination

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  • Oliva, Juan Carlos Martinez

Abstract

There is a firmly rooted presumption among economists that the greater the interdependence, the larger the externalities generated by unilateral policy-making and therefore the greater the potential gains from coordination. The author demonstrates that despite its intuitively obvious connection with the gains from coordination, interdependence is not in itself sufficient to ensure that advantages will stem from a cooperative process. Indeed, it is shown that, even if interdependence is certainly necessary for coordination gains, the actual source of such gains is comparative policy advantage. Copyright 1991 by Royal Economic Society.

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  • Oliva, Juan Carlos Martinez, 1991. "One Remark on Spillover Effects and the Gains from Coordination," Oxford Economic Papers, Oxford University Press, vol. 43(1), pages 172-176, January.
    • Handle: RePEc:oup:oxecpp:v:43:y:1991:i:1:p:172-76
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    Cited by:

    1. Juan Carlos Martinez Oliva, 2014. "Moving Towards Monetary Integration in East Asia: Achieving Economic Convergence in a Game-Theory Framework," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-24.
    2. Peter Mooslechner & Martin Schuerz, 1999. "International Macroeconomic Policy Coordination: Any Lessons for EMU? A Selective Survey of the Literature," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(3), pages 171-199, September.

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