A Volatility-based Theory of Fiscal Union Formation

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(1)ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES. EUI Working Papers RSCAS 2012/21 ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES Global Governance Programme-17. A VOLATILITY-BASED THEORY OF FISCAL UNION FORMATION. Jaime Luque, Massimo Morelli and José Tavares.

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(3) EUROPEAN UNIVERSITY INSTITUTE, FLORENCE ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES. GLOBAL GOVERNANCE PROGRAMME. A Volatility-based Theory of Fiscal Union Formation JAIME LUQUE, MASSIMO MORELLI AND JOSÉ TAVARES. EUI Working Paper RSCAS 2012/21.

(4) This text may be downloaded only for personal research purposes. Additional reproduction for other purposes, whether in hard copies or electronically, requires the consent of the author(s), editor(s). If cited or quoted, reference should be made to the full name of the author(s), editor(s), the title, the working paper, or other series, the year and the publisher.. ISSN 1028-3625. © 2012 Jaime Luque, Massimo Morelli and José Tavares Printed in Italy, May 2012 European University Institute Badia Fiesolana I – 50014 San Domenico di Fiesole (FI) Italy www.eui.eu/RSCAS/Publications/ www.eui.eu cadmus.eui.eu.

(5) Robert Schuman Centre for Advanced Studies The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Stefano Bartolini since September 2006, aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society. The Centre is home to a large post-doctoral programme and hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union. Details of the research of the Centre can be found on: http://www.eui.eu/RSCAS/Research/ Research publications take the form of Working Papers, Policy Papers, Distinguished Lectures and books. Most of these are also available on the RSCAS website: http://www.eui.eu/RSCAS/Publications/ The EUI and the RSCAS are not responsible for the opinion expressed by the author(s). The Global Governance Programme at the EUI The Global Governance Programme (GGP) aims to share knowledge, and develop new ideas on issues of global governance, serve as a bridge between research and policy-making, and contribute the European perspective to the global governance debate. The GGP comprises three core dimensions: training, research and policy. The Academy of Global Governance is a unique executive training programme which combines EUI’s top-level academic environment with some of the world’s leading experts in the field of global governance and is targeted to young executives and policy-makers, public sector officials, private sector professionals, junior academics, and diplomats. Diverse global governance issues are investigated in research strands and projects coordinated by senior scholars, both from the EUI and from internationally recognized top institutions. The policy dimension is developed throughout the programme, but is highlighted in the GGP High-Level Policy Seminars, which bring together policy-makers and academics at the highest level to discuss issues of current global importance.. For more information: www.globalgovernanceprogramme.eu.

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