Comparative advantage, terms of trade and welfare effects of European integration: some preliminary assessments

Article Abstract:

The comparative advantage and terms-of-trade effects of European integration of Norway is analyzed using a computable general equilibrium model for world trade and a model of Norway as a small open economy. Results show that the direct productivity gains of Norway after European integration is moderate but terms-of-trade effects are substantial. It is indicated, however, that such an integration will merely facilitate policy adjustments in Norway by providing a conducive political atmosphere for such changes.

Economic policy, Norway, Terms of trade, European Economic Community

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Decreasing unemployment increases welfare

Article Abstract:

Employment can be a 'gain for society' under certain standard assumptions. When preferences and production sets are smooth and there is an unrestrained supply of a commodity, voluntary unemployment allocation can result in a Pareto improvement and increase employment. However, unless a Pareto-better allocation can be obtained as a voluntary allocation, such employment cannot occur without increasing unemployment. Under this condition, employment is not a 'gain for society.'

Unemployment

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Efficiency with non-convexities: extending the "Scandinavian consensus" approaches

Article Abstract:

Two unique Scandinavian consensus approach to determining the public good supply exist, both based on agents' willingness to pay. A Wicksell-Foley approach involves a concept of politico-economic equilibrium where a negative consensus is included, stating that no alternative public proposal is unanimously preferred. The Lindahl approach or valuation equilibrium induces a positive consensus about what public environment should be selected.

Economics, Research and Development in the Social Sciences and Humanities, Models, Scandinavia, Public goods, Income distribution

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