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This paper examines the incentives for individual countries to engage in global negotiations to reduce carbon emissions in order to prevent global warming. To reduce carbon emissions a country reduces consumption of its own good. The direct effect of reducing its own consumption is that consumption declines and with it utility. However, reducing carbon emissions also lowers global temperatures and...
We develop a methodology to determine numerically how globalized the world economy is. We present a global general equilibrium model capturing major OECD economies and a residual rest of world for which alternative metrics of distance between observed, free trade and autarky equilibria can be developed. We use data for 2000 and report a number of distance measures between the 2000 observed trade restricted...
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