Brexit and the Macroeconomic Impact of Trade Policy Uncertainty
Joseph Steinberg
No 216, 2017 Meeting Papers from Society for Economic Dynamics
Abstract:
The United Kingdom has voted to leave the European Union but the trade policies that will replace E.U. membership are uncertain, and speculation abounds that this uncertainty will harm the U.K. economy until it is resolved. To assess the impact of uncertainty about post-Brexit trade policies, I study a dynamic general equilibrium model with endogenous export participation and uncertainty about whether future U.K.-E.U. trade costs will be high or low. I find that the total welfare cost of Brexit for U.K. households is between £7,000 and £18,000 per person, while uncertainty about Brexit costs less than £45 per person.
Date: 2017
New Economics Papers: this item is included in nep-dge, nep-int and nep-mac
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Citations: View citations in EconPapers (19)
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Journal Article: Brexit and the macroeconomic impact of trade policy uncertainty (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:216
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