A theory of economic unions☆
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We thank Gene Grossman, Alexander Monge-Naranjo, and participants to the Carnegie-Rochester-NYU Conference on Public Policy “On the Border of International Cooperation” and to the 4th Bruneck Workshop on Political Economy for their useful comments. Ugur Yesilbayraktar provided excellent research assistance. We acknowledge financial support from the Centre de Recerca en Economia Internacional (CREI), through the European Research Council (ERC), under the European Union’s Horizon 2020 Programme, Grant Agreements 693512 (“Globalization, Economic Policy and Political Structure”) and 714905 (“Citizens, Institutions and Globalization”), the Spanish Ministry of Economy and Competitiveness (grants RYC-2013-13838 and SEV-2015-0563), the Generalitat de Catalunya through the CERCA program, and the Leverhulme Trust through a 2019 Research Fellowship.