IDEAS home Printed from https://ideas.repec.org/p/zbw/tuewef/82.html
   My bibliography  Save this paper

European monetary integration and aggregate relative deprivation: The dull side of the shiny euro

Author

Listed:
  • Stark, Oded
  • Wlodarczyk, Julia

Abstract

Drawing on the premise that the integration of economies revises people's social space and their comparators, we quantify social stress by aggregate relative deprivation, ARD; we calculate the effect of monetary mergers on ARD; and we document the validity of the superadditivity property of ARD for successive adoptions of a common currency by European countries. One feature of monetary unification, which replaces diverse currencies with a common currency, is that it brings about a change in the comparison environment, expanding the reference space of individuals in a given country to encompass individuals from the joining countries. Overall, calculations regarding six enlargements of the Economic and Monetary Union between 1999 and 2011 reveal an increase of ARD on six occasions when we hold incomes constant, and on five when we take into consideration changes in incomes. In addition, we observe an uneven distribution of the costs and benefits from monetary integration among the participating countries when these costs and benefits are measured in terms of ARD.

Suggested Citation

  • Stark, Oded & Wlodarczyk, Julia, 2015. "European monetary integration and aggregate relative deprivation: The dull side of the shiny euro," University of Tübingen Working Papers in Business and Economics 82, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    • Handle: RePEc:zbw:tuewef:82
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/110979/1/827682832.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oded Stark, 2010. "Looking at the Integration of Nations through the Lens of the Merger of Populations: Preliminary Superadditivity and Impossibility Results," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 661-675, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stark, Oded & Zawojska, Ewa & Kohler, Wilhelm & Szczygielski, Krzysztof, 2018. "An adverse social welfare effect of a doubly gainful trade," Journal of Development Economics, Elsevier, vol. 135(C), pages 77-84.
    2. Stark, Oded & Kosiorowski, Grzegorz, 2020. "An Adverse Social Welfare Effect of Quadruply Gainful Trade," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 24(3), pages 207-235, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stark, Oded, 2012. "Integration, social distress, and policy formation," Economics Letters, Elsevier, vol. 115(2), pages 318-321.
    2. Stark, Oded & Kobus, Martyna & Jakubek, Marcin, 2012. "A concern about low relative income, and the alignment of utilitarianism with egalitarianism," Economics Letters, Elsevier, vol. 114(3), pages 235-238.
    3. Oded Stark & Ewa Zawojska, 2016. "Will a government find it financially easier to neutralize a looming protest if more groups are involved?," Constitutional Political Economy, Springer, vol. 27(4), pages 435-450, December.
    4. Stark, Oded, 2013. "Stressful Integration," European Economic Review, Elsevier, vol. 63(C), pages 1-9.
    5. Sakketa, T.G., 2018. "Relative Deprivation in Income, Assets, and Social Capital: Motivational and Deterrent Impacts on the Well-Being of Rural Youth," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277116, International Association of Agricultural Economists.
    6. Stark, Oded & Jakubek, Marcin, 2013. "Integration as a catalyst for assimilation," International Review of Economics & Finance, Elsevier, vol. 28(C), pages 62-70.
    7. Stark, Oded, 2017. "Possible Policy Responses to a Dark Side of the Integration of Regions and Nations," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 329-341.
    8. Stark, Oded, 2014. "A policy response to a downside of the integration of economies: An impossibility theorem," Economics Letters, Elsevier, vol. 124(2), pages 180-184.
    9. Stark, Oded, 2012. "Policy responses to a dark side of the integration of regions," University of Tübingen Working Papers in Business and Economics 28, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    10. Sakketa Tekalign Gutu & Gerber Nicolas, 2018. "Working Paper 296 - Relative Deprivation and Well-Being of the Rural Youth," Working Paper Series 2423, African Development Bank.

    More about this item

    Keywords

    Monetary integration; Aggregate relative deprivation; Superadditivity; Social stress;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuewef:82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wftuede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.