Template-type: ReDIF-Paper 1.0
Author-Name: Donato Masciandaro
Author-Name: Davide Romelli
Title: To Be or not to Be a Euro Country? The Behavioural Political Economics of Currency Unions
Abstract: The aim of this paper is to use a behavioural political economy approach to revise the standard approach of optimal currency areas, and applying it to the Eurozone case. We discuss the pros and cons of the Euro membership if behavioural biases - prospect theory - influence the citizens and consequently the political actors. The theoretical framework is used to analyse in general under which conditions the Euro irreversibility assumption is likely to hold and specifically the support in favour of the Euro membership in a country case.
Classification-JEL:
Keywords: 
Length: 37 pages 
Number: 1883
Creation-Date: 2018
File-URL: https://repec.unibocconi.it/baffic/baf/papers/cbafwp1883.pdf
File-Format: application/pdf
File-Size: 489
Handle: RePEc:baf:cbafwp:cbafwp1883