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Export Subsidies and Interdependence in Euro Union: Beggar Thy Neighbor?

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  • Damodaran, Nikhil

Abstract

We examine the inter-linkages between economies in the European Monetary Union. We work through a baseline New Keynesian Model and include export subsidies into the analysis. Theoretically, it is plausible to have a beggar thy neighbor expansion of the core at the cost of periphery.

Suggested Citation

  • Damodaran, Nikhil, 2016. "Export Subsidies and Interdependence in Euro Union: Beggar Thy Neighbor?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235701, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235701
    DOI: 10.22004/ag.econ.235701
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    References listed on IDEAS

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    1. Sourafel Girma & Holger Görg & Joachim Wagner, 2009. "Subsidies and Exports in Germany. First Evidence from Enterprise Panel Data," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 55(3), pages 179-198.
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    4. Olivier Blanchard & Christopher J. Erceg & Jesper Lindé, 2017. "Jump-Starting the Euro-Area Recovery: Would a Rise in Core Fiscal Spending Help the Periphery?," NBER Macroeconomics Annual, University of Chicago Press, vol. 31(1), pages 103-182.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    8. Ms. Selma Mahfouz & Mr. Richard Hemming & Mr. Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity: A Review of the Literature," IMF Working Papers 2002/208, International Monetary Fund.
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    International Relations/Trade;

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