Endogeneity of Currency Areas and Trade Blocs: Evidence from the Inter-War Period

Research, Preprint English OPEN
Wolf, Nikolaus; Ritschl, Albrecht;
  • Publisher: Berlin: Humboldt-Universität zu Berlin, Center for Applied Statistics and Economics (CASE)
  • Subject: Currency blocs,gravity model,endogeneity,treatment effects | N70 | F33 | gravity model | F15 | treatment effects | Currency blocs | endogeneity | currency blocs; endogeneity; gravity model; treatment effects
    • jel: jel:N70 | jel:F33 | jel:F15
      ddc: ddc:330

Empirical research on the gravity model of international trade in the wake of Rose (2000) affirms that currency union formation doubles or triples trade. However, currency unions could also be established precisely because trade among their members was already high. In ... View more
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